Overweight / underweight

Overweight / underweight

We all have an ideal weight range determined by our body mass index. It turns out the same is true for our investment portfolios.

A portfolio is overweight if it contains an excess amount of a single security. If the portfolio lacks a sufficient amount of a security (mainly stocks or bonds), it is considered underweight. In an effort to maximize returns, the portfolio manager may choose to make a security over or underweight based on whether they think it will over or under perform the wider market.

 
 
Compound interest

Compound interest

Robo-advice

Robo-advice

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