Avoiding Portfolio Overlap

Answer these questions to check whether you're suffering from portfolio overlap

Morningstar Editors 30.08.2013
Facebook Twitter LinkedIn

If you've been following our education theme then by now you will have determined your investment goals, figured out what you'll need to earn to reach them, and found investments that match those goals and your risk tolerance. Your portfolio is built, and you're ready to relax.

Not So Fast
Face it: Investing is a lifetime activity and you'll need to continue to monitor what you have created. Just as a parent never stops parenting, an investor never stops investing. So even after making all these decisions, you now face a more difficult—yes, more difficult—part of the process: monitoring your portfolio and learning how and when to make changes.

One of the very first problems you may face is the problem of portfolio overlap: You may have one or two individual stocks, investment styles, or sectors overrepresented in your portfolio. After investing for a while, investors often find that though their funds come in different wrappers, many have similar content. In other words, these investors have too much of one thing. To gauge how much overlap your portfolio has, you can do some hefty calculations by hand, using shareholder reports. Alternately, you can enter your portfolio in a tracking tool such as Morningstar.co.uk's Portfolio X-Ray.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Member.

Register For Free
Facebook Twitter LinkedIn

About Author

Morningstar Editors  -

© Copyright 2021 Morningstar Asia Ltd. All rights reserved.

Terms of Use        Privacy Policy        Cookies