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.
Do You Have Too Much in Any One Stock? >>