A balanced and highly diversified portfolio with a strong focus on stocks and global exposure

Report created on Aug 5, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

Your portfolio has a healthy mix of equity and bond funds, with a significant tilt towards stocks, making up 82% of the portfolio. The largest position is in a total market index fund, followed by a large-cap growth fund, an international index fund, and a U.S. bond index fund. This structure suggests a balanced approach, aiming for growth through equities while using bonds to mitigate risk. The diversification across asset classes is commendable, though there's a notable overlap between the total market and large-cap growth funds, which could impact the portfolio's overall efficiency.

Growth Info

Historically, your portfolio has shown a Compound Annual Growth Rate (CAGR) of 12.53%, with a maximum drawdown of -29.55%. This performance indicates a resilient growth trajectory, even considering the drawdown, which is a common risk in equity-heavy portfolios. The days contributing to 90% of returns highlight the impact of significant market movements on portfolio performance. Comparing these figures against benchmarks would provide further insight into the portfolio's relative strength.

Projection Info

Monte Carlo simulations, which use historical data to project future outcomes, show a wide range of potential portfolio values. The median outcome suggests a 339.3% increase, which is optimistic. However, it's crucial to remember that these projections are based on past data and cannot guarantee future results. The high number of simulations with positive returns reinforces the portfolio's potential for growth, but it's essential to remain aware of the inherent uncertainties in market behaviors.

Asset classes Info

  • Stocks
    82%
  • Bonds
    17%
  • Cash
    1%

Your allocation to stocks and bonds is well-considered for a balanced risk profile. Stocks, being growth-oriented, offer the potential for higher returns but come with increased volatility. Bonds, on the other hand, provide stability and income, reducing overall portfolio risk. The small cash holding offers liquidity, which is useful for taking advantage of new investment opportunities or covering unforeseen expenses. This asset class distribution supports both growth objectives and risk management effectively.

Sectors Info

  • Technology
    26%
  • Financials
    12%
  • Consumer Discretionary
    10%
  • Telecommunications
    8%
  • Industrials
    8%
  • Health Care
    7%
  • Consumer Staples
    4%
  • Basic Materials
    2%
  • Energy
    2%
  • Real Estate
    2%
  • Utilities
    2%

The sectoral allocation shows a strong preference for technology, financial services, and consumer cyclicals, which are sectors typically associated with growth. This concentration aligns with the portfolio's growth orientation but may also introduce sector-specific risks, such as higher volatility during economic downturns. Diversification across a broader range of sectors could help mitigate these risks while still capturing growth opportunities in different market conditions.

Regions Info

  • North America
    62%
  • No data
    17%
  • Europe Developed
    9%
  • Japan
    3%
  • Asia Emerging
    3%
  • Asia Developed
    2%
  • Australasia
    1%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, the portfolio is heavily weighted towards North America, with significant exposure to international markets, including developed Europe and emerging Asia. This global diversification enhances the portfolio's growth potential by tapping into different economic cycles and market dynamics. However, the 'Unknown' category suggests a need for clarity on certain holdings, which could be addressed by reviewing fund specifics or considering more transparent investments.

Market capitalization Info

  • Mega-cap
    41%
  • Large-cap
    23%
  • Mid-cap
    13%
  • Small-cap
    3%
  • Micro-cap
    1%

The emphasis on mega and big-cap stocks provides stability and reduces volatility, given these companies' established market positions. However, the relatively smaller allocation to medium, small, and micro-cap stocks limits exposure to higher-growth opportunities these segments can offer. Balancing this allocation could enhance returns while maintaining an acceptable level of risk, given your balanced profile.

Redundant positions Info

  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS
    Fidelity Total Market Index Fund
    High correlation

The high correlation between the total market and large-cap growth funds suggests redundancy, reducing the portfolio's diversification benefits. Since these funds likely hold many of the same stocks, any market downturn affecting large caps could disproportionately impact your portfolio. Reducing overlap by reallocating assets from one of these funds into areas with lower correlation could enhance the portfolio's resilience.

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 the Efficient Frontier could further improve the risk-return ratio. This involves adjusting asset allocations to achieve the best possible balance between expected returns and risk, based on historical performance. Given the current overlap in highly correlated assets, focusing on diversification could help in moving the portfolio closer to the Efficient Frontier, maximizing potential returns for your given risk level.

Dividends Info

  • Fidelity Total Market Index Fund 1.00%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.30%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.40%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 2.90%
  • Weighted yield (per year) 1.48%

Your portfolio's dividend yield is a mix of growth-focused funds with lower yields and income-oriented bonds with higher yields, resulting in an overall yield of 1.48%. This balance supports the portfolio's growth while providing a steady income stream, which can be reinvested for compounding benefits. Monitoring dividend yield trends can ensure that the portfolio maintains a good balance between growth and income.

Ongoing product costs Info

  • Fidelity Total Market Index Fund 0.02%
  • FIDELITY LARGE CAP GROWTH INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.04%
  • FIDELITY TOTAL INTERNATIONAL INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.06%
  • FIDELITY U.S. BOND INDEX FUND INSTITUTIONAL PREMIUM CLASS 0.02%
  • Weighted costs total (per year) 0.03%

The portfolio's total expense ratio (TER) is remarkably low at 0.03%, which is excellent for long-term growth. Lower costs mean more of your investment returns are kept, rather than paid out in fees. This efficient cost structure is a significant strength, enhancing the portfolio's net performance. Continually monitoring and minimizing investment costs remains a prudent strategy.

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