Course 501: Avoiding Portfolio Overlap
Do You Favor One Investment Style over Another?
In this course
1 Introduction
2 Do You Favor One Investment Style over Another?
3 Do You Have Too Much in Any One Stock?
4 Do You Favor One or Two Sectors over Others?
5 Do You Own Too Many Large-Cap Funds?
6 Do You Own Multiple Funds Run by the Same Manager?
7 Do You Own Multiple Funds from One Boutique Family?

The Morningstar Style Box can be an investor's best friend when it comes to making sure that your portfolio is still diversified. Based on a fund's most recent portfolio, the style box will not only tell you whether your manager has gone whole hog into large-value stocks, but it can also lead you to funds that bear little resemblance to one another. After all, value funds don't act much like growth portfolios, and small-cap funds behave differently from large-cap offerings. In style-box lingo, opposite corners should attract. If you're too heavy in large value, try increasing your position in large-growth, small-value, or small-growth offerings.

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