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Why would a person with several funds pay more in expenses and taxes than a person with just one or two funds? <?i>

You're correct. The number of funds isn't theissue, but the original message to which I was replying involved a question about index funds versus actively managed funds. As long as you pay close attention to tax efficiency and fees, you can have as many funds as you want from an expense/tax standpoint. One exception is Vanguard. If you put a lot of your eggs in one basket so as to qualify for Admiral funds, you get lower fees, which can make a difference.
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