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

Report created on Jul 30, 2025

Risk profile Info

5/7
Growth
Less risk More risk

Diversification profile Info

1/5
Single-Focused
Less diversification More diversification

Positions

This portfolio is heavily weighted towards technology, with a significant allocation in the Deutsche Science and Technology Fund Class A, making up 55% of the portfolio. The remaining assets are distributed between the Deutsche S&P 500 Index Fund Class A and the Fidelity 500 Index Fund, focusing on broad market exposure. The high concentration in technology and large-cap stocks indicates a growth-focused strategy but presents a single-focused diversification approach, which may increase volatility and risk.

Growth Info

Historically, this portfolio has achieved a Compound Annual Growth Rate (CAGR) of 13.11%, with a maximum drawdown of -36.09%. The performance is largely influenced by the technology sector's growth, which can be volatile. The days that make up 90% of returns being so few indicates high volatility on specific days, a characteristic of growth-driven portfolios. Comparing this to benchmarks, the performance is commendable but comes with considerable risk, as evidenced by the drawdown.

Projection Info

Monte Carlo simulations suggest a wide range of outcomes, with the median projection showing a 432.4% increase. This method uses historical data to forecast future performance, but it's crucial to remember that past performance doesn't guarantee future results. The high percentile outcomes indicate potential for significant growth, aligning with a growth-oriented risk profile. However, the spread of outcomes underscores the risk involved.

Asset classes Info

  • Stocks
    98%
  • Cash
    2%

The portfolio's asset allocation is almost entirely in stocks (98%), with a minimal cash reserve (2%). This allocation supports a high-growth strategy but lacks bond or other asset class diversification that could mitigate risk. While this aligns with a growth profile, it exposes the portfolio to market volatility, emphasizing the need for a high risk tolerance.

Sectors Info

  • Technology
    56%
  • Telecommunications
    13%
  • Financials
    8%
  • Industrials
    6%
  • Consumer Discretionary
    5%
  • Health Care
    5%
  • Consumer Staples
    3%
  • Energy
    1%
  • Utilities
    1%
  • Real Estate
    1%
  • Basic Materials
    1%

Technology dominates the sector allocation at 56%, followed by communication services and financial services. This concentration in technology and related sectors could lead to higher volatility, especially during market downturns or sector-specific shocks. Diversifying across more sectors could reduce risk while still allowing for growth potential.

Regions Info

  • North America
    98%
  • Europe Developed
    1%

Geographically, the portfolio is almost entirely invested in North America (98%), with minimal exposure to developed Europe and no presence in emerging markets or other regions. This geographic concentration increases exposure to US market performance, limiting global diversification benefits that could spread risk and tap into growth opportunities elsewhere.

Market capitalization Info

  • Mega-cap
    50%
  • Large-cap
    31%
  • Mid-cap
    13%
  • Small-cap
    4%

The portfolio's market capitalization breakdown shows a strong preference for mega (50%) and large-cap (31%) stocks, with lesser exposure to medium and small-cap stocks. This focus on larger companies is typical for growth strategies but may limit exposure to the potentially higher growth rates of smaller companies.

Redundant positions Info

  • Fidelity 500 Index Fund
    DEUTSCHE S&P 500 INDEX FUND CLASS A
    High correlation

The high correlation between the Fidelity 500 Index Fund and the Deutsche S&P 500 Index Fund Class A indicates overlapping investments, reducing the benefits of diversification. Removing or reducing exposure to one of these funds could help in achieving a more diversified and efficient portfolio.

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.

Optimizing the portfolio for efficiency suggests a potential expected return of 14.69% at a similar risk level, indicating room for improvement in diversification without sacrificing growth. Reducing highly correlated assets could enhance diversification benefits and potentially lower volatility without significantly impacting expected returns.

Dividends Info

  • Fidelity 500 Index Fund 0.90%
  • DEUTSCHE SCIENCE AND TECHNOLOGY FUND CLASS A 9.20%
  • DEUTSCHE S&P 500 INDEX FUND CLASS A 0.60%
  • Weighted yield (per year) 5.35%

The portfolio's total dividend yield is 5.35%, with the Deutsche Science and Technology Fund Class A contributing significantly due to its high yield. While dividends can provide a steady income stream, the focus on growth stocks often results in lower overall yield. In a growth-oriented portfolio, reinvesting dividends could compound growth over time.

Ongoing product costs Info

  • Fidelity 500 Index Fund 0.02%
  • DEUTSCHE SCIENCE AND TECHNOLOGY FUND CLASS A 0.88%
  • DEUTSCHE S&P 500 INDEX FUND CLASS A 0.54%
  • Weighted costs total (per year) 0.69%

The portfolio's total expense ratio (TER) averages to 0.69%, which is relatively low, enhancing long-term return potential. Lowering costs is crucial for improving net returns, especially in growth portfolios where compounding plays a significant role. Maintaining a focus on cost efficiency is commendable.

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