Growth-focused portfolio with a strong tilt towards technology and large-cap stocks

Report created on Aug 5, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

3/5
Moderately Diversified
Less diversification More diversification

Positions

The portfolio is heavily weighted towards equities, with a significant focus on the technology sector, evidenced by a 60% allocation to a broad market index fund and 40% combined allocation to technology-focused funds. This composition reflects a growth-oriented strategy but exhibits a high concentration in one sector, which may increase volatility. The diversification is moderate, leaning heavily on North American equities, particularly in the technology sector, which dominates the portfolio's sector allocation.

Growth Info

Historically, this portfolio has shown impressive growth, with a Compound Annual Growth Rate (CAGR) of 18.31%. However, it has also experienced a significant maximum drawdown of -34.41%, highlighting its susceptibility to market volatility, especially in tech-heavy downturns. The days contributing to 90% of returns being limited to 35 suggests that the portfolio's performance is highly reliant on a few exceptional periods, which may not consistently repeat in the future.

Projection Info

The Monte Carlo simulation, a tool that forecasts potential outcomes by varying random inputs within historical ranges, suggests a wide range of possible future performances. With 991 out of 1,000 simulations showing positive returns and a median projected increase of 1,060.5%, the forward-looking scenario appears optimistic. However, the reliance on historical data means these projections cannot guarantee future outcomes, especially in unpredictable market conditions.

Asset classes Info

  • Stocks
    99%
  • Other
    1%

The portfolio's asset allocation is almost entirely in stocks (99%), with a negligible portion in other asset classes. This heavy equity concentration maximizes growth potential but also increases risk, particularly given the lack of bond holdings, which can offer stability during market downturns. Diversifying into more asset classes could help mitigate volatility without significantly compromising growth prospects.

Sectors Info

  • Technology
    58%
  • Financials
    9%
  • Health Care
    7%
  • Consumer Discretionary
    6%
  • Telecommunications
    6%
  • Industrials
    4%
  • Consumer Staples
    4%
  • Energy
    2%
  • Utilities
    2%
  • Real Estate
    1%
  • Basic Materials
    1%

Sector allocation is heavily skewed towards technology (58%), reflecting a strong bet on continuous innovation and growth within this sector. While this has historically been a lucrative strategy, it also exposes the portfolio to sector-specific risks, such as regulatory changes or technological disruptions. Balancing this with investments in less volatile sectors could provide a more stable return profile.

Regions Info

  • North America
    95%
  • Europe Developed
    3%
  • Asia Developed
    2%
  • Asia Emerging
    1%

Geographic exposure is predominantly in North America (95%), with minimal allocations to developed Europe, developed Asia, and emerging Asia. This concentration benefits from the robust performance of North American markets, particularly the U.S., but limits global diversification. Expanding geographic exposure could reduce regional risks and tap into growth opportunities in other markets.

Market capitalization Info

  • Mega-cap
    49%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    2%

The portfolio's market capitalization breakdown shows a preference for mega (49%) and big (28%) cap stocks, aligning with its growth and stability objectives. However, the limited exposure to small and micro-cap stocks restricts potential high-growth opportunities in these segments, which could offer outsized returns albeit with higher risk.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Click on the colored dots to explore allocations.

By analyzing the portfolio through the lens of the Efficient Frontier, it's clear that there's room for optimization to achieve a better risk-return balance. Adjusting the asset allocation to include more diversification across sectors, geographies, and asset classes could move the portfolio towards an optimal position on the Efficient Frontier, enhancing expected returns for a given level of risk.

Dividends Info

  • Fidelity Select Semiconductors Portfolio 7.30%
  • TECHNOLOGY PORTFOLIO TECHNOLOGY PORTFOLIO 6.40%
  • Fidelity 500 Index Fund 0.90%
  • Weighted yield (per year) 3.28%

The portfolio's dividend yield stands at 3.28%, with notable contributions from the technology-focused funds. This yield indicates a reasonable income component to complement growth, especially valuable during slower growth periods. However, the focus on growth stocks, which typically reinvest profits rather than pay dividends, naturally limits the portfolio's overall yield.

Ongoing product costs Info

  • Fidelity Select Semiconductors Portfolio 0.62%
  • TECHNOLOGY PORTFOLIO TECHNOLOGY PORTFOLIO 0.62%
  • Fidelity 500 Index Fund 0.02%
  • Weighted costs total (per year) 0.26%

The total Expense Ratio (TER) of 0.26% is relatively low, enhancing long-term return potential by minimizing cost drag on performance. The stark cost difference between the broad market index fund and the technology-focused funds underscores the importance of cost awareness in fund selection, especially when similar strategies may be available at varying costs.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.

Instrument logos provided by Elbstream.

Help us improve Insightfolio

Your feedback makes a difference! Share your thoughts in our quick survey. Take the survey