Most portfolios are simply too complex. Unfortunately many investors are guilty of thinking complexity is a good thing! ITS NOT. having a portfolio that has exotic products can almost always ensure the portfolio has excessive fees. Even getting past that fee hurdle, the complexities of investing will generally subtract from performance not add to it.
I find that Ken Hawkins of Second Opinion Investor Services generally is the writer that best puts his fingers on the key issues and does it in a way we can all understand.......so here's Ken from his latest Investopedia article.
soismike
Many investors find themselves with a portfolio that is too complicated to understand, hard to manage and difficult to change. In fact, some investors' portfolios contain so many mutual fund and principal protected notes (PPN) that they match the complexity of billion dollar pension plans, but without the expertise and resources required to manage them properly. Individual investors, especially those who invest in mutual funds, should strive for simplicity in portfolio construction. Koichi Kawana, a designer of botanical gardens, says "Simplicity means the achievement of maximum effect with minimum means." This could also be applied to an investment portfolio. See the link for the rest of the article.
http://www.investopedia.com/articles/basics/08/simplify-investing.asp?Page=1
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