Are you investing for retirement or to buy something in the near future?
If for retirement think long term. Your portfolio asset allocation is directly dependant upon your current age, desired retirement age and risk tolerance. Not to disparage some of the other contributors here, but most actively managed mutual funds are a sucker's bet. Just because one fund in a fund family is doing well this year, does not mean it will do well next year or the year after that.
90% of a portfolio's performance is a result of it's asset allocation. Equities vs. bonds. Small, mid and large cap. Domestic vs. international. Value vs. growth. View asset allocation of how much of each ingredient is needed for a cake recipe. It doesn't matter what brand of flour, sugar or eggs you use, but the ratio of the ingredients to each other. Time in or out of the market and individual investments combined account for 20% or less of the performance.
I could ask you seven questions and based upon your answers tell you what mix/recipe/ratio you should use. Use index funds like the Vanguard family to meet your asset allocation. Why? They have lower operating expense ratios. Why pay some guy to underperform the index while trying to beat it and diminishing your returns?
Rebalance it at least once a year to get your portfolio back to it's original allocation.
Why am I being dogmatic? This is just a glimpse of what is the gist of what is known as modern portfolio theory which has won a Nobel Prize in economics (Markowitz, Miller and Sharpe 1990). 99% of the clowns on CNBC can't hold a candle to that. For any of you econ. majors out there I know I haven't discussed expected return vs. risk, beta, sharpe ratios, alpha, CAPM, the efficient frontier and French and Famas three factor model, etc. but I'm trying to to gear this to non-econ. or finance majors.
Also, I'm a fully licensed (Series 7, 66 and life and health)financial advisor and frankly disgusted at how brokerages and Wall Street play upon the common man's misperception that there is some magic formula/trick/crystal ball/tea leaf reading technique to beating the market. The scary truth is: the average investor underperforms the market by at least 10%. Why? Because the average investor lets emotions guide his/her investment decisions. The two biggest emotions "guiding" investors are greed and fear.
Company policy prohibits me from saying for whom I work whilst on an internet chat room, but suffice it to say it's a major wirehouse.
Do yourself a favor and buy "A Random Walk Down Wall Street". Also, do a web search on Modern Portfolio Theory and look at those web sites to learn the basics.
Finally, don't withdraw from this portfolio and if you can, add to it periodically.
I'll step down from my soap box now.