A growth oriented balanced portfolio with strong diversification but relatively high fees and low income

Report created on Dec 18, 2025

Risk profile Info

4/7
Balanced
Less risk More risk

Diversification profile Info

5/5
Highly Diversified
Less diversification More diversification

Positions

The portfolio is built almost entirely from actively managed mutual funds, with several share classes holding similar underlying holdings. Equity exposure dominates, with only a small slice in bonds and cash despite a “balanced” label. This structure means most of the risk and return comes from the stock market rather than from income or capital preservation assets. The balanced risk score of 4 out of 7 fits a middle‑of‑the‑road risk level, but the actual mix leans growthy. Tidying up overlapping funds and simplifying into fewer core holdings could keep the same general risk level while making the portfolio easier to understand and manage over time.

Growth Info

With a historical compound annual growth rate (CAGR) of about 11%, this portfolio has delivered strong long‑term growth. CAGR is basically your average yearly “cruising speed” over the whole journey, smoothing out the bumps. A max drawdown of around ‑30% shows that during bad markets, values can fall sharply, which is normal for stock‑heavy allocations. This downside is fairly typical for a growth‑tilted balanced approach and suggests the risk profile is broadly in line with expectations. It’s important to remember that past performance doesn’t guarantee future results, so decisions should lean more on overall structure and risk comfort rather than simply chasing those historic return numbers.

Projection Info

The Monte Carlo results point to a wide range of possible futures, with most scenarios positive. A Monte Carlo simulation is like running thousands of “what if” market paths based on historical patterns to see how often things turn out well or poorly. Here, roughly 98% of simulations produced gains, with a median outcome roughly tripling the starting value, and the most cautious 5% still growing moderately. The overall simulated annual return around 12% suggests that, if markets behave somewhat like the past, the risk‑return balance is favorable. Still, these simulations rely on historical behavior, and markets can change, so they should be treated as guideposts, not guarantees.

Asset classes Info

  • Stocks
    92%
  • Bonds
    5%
  • Cash
    3%

The portfolio’s asset mix is 92% stocks, 5% bonds, and 3% cash, which is quite aggressive for something labeled balanced. Many balanced benchmarks sit closer to a 60/40 or 70/30 stock‑to‑bond mix, so this setup behaves more like a growth portfolio with only a thin cushion from fixed income. The high equity share supports strong long‑term growth potential but can make downturns feel sharper. For someone wanting smoother ride and more stability, gradually increasing the share of bonds and cash‑like holdings could help. For someone comfortable with swings, maintaining this equity tilt is fine, but it’s essential to be honest about how a 30% drop would feel in real life.

Sectors Info

  • Technology
    30%
  • Industrials
    20%
  • Financials
    15%
  • Telecommunications
    7%
  • Consumer Discretionary
    7%
  • Health Care
    6%
  • Energy
    6%
  • Basic Materials
    3%
  • Consumer Staples
    3%
  • Utilities
    2%
  • Real Estate
    2%

Sector exposure is well spread, with technology, industrials, and financials leading the way and smaller slices across communication services, consumer areas, healthcare, and others. A 30% tilt to technology can boost growth when innovation and earnings are strong but also tends to magnify volatility when interest rates rise or when investors rotate into more defensive areas. The broad sector coverage strongly supports diversification and matches many modern equity benchmarks, which is a real strength. If that tech allocation occasionally feels too punchy during rate scares or market corrections, trimming slightly toward more defensive or less correlated areas can smooth the ride while keeping growth potential intact.

Regions Info

  • North America
    70%
  • Europe Developed
    19%
  • Asia Emerging
    4%
  • Japan
    3%
  • Asia Developed
    2%
  • Africa/Middle East
    1%
  • Latin America
    1%

Geographically, about 70% sits in North America with 30% abroad, mostly in developed Europe and Asia. This is quite close to common global benchmarks, which typically lean heavily toward the U.S. and other developed markets. This alignment is positive because it taps into the depth and stability of large, established markets while still capturing some international diversification. Emerging markets exposure is modest, so the portfolio doesn’t overly rely on riskier regions for returns. Anyone wanting even broader global balance could modestly tilt more outside North America, while those comfortable with U.S. leadership may view this current split as a sweet spot between home bias and global diversification.

Market capitalization Info

  • Mega-cap
    34%
  • Large-cap
    28%
  • Mid-cap
    20%
  • Small-cap
    5%
  • Micro-cap
    1%

The portfolio spans company sizes, with heavy exposure to mega and large caps and smaller but meaningful stakes in mid and small caps. This is broadly in line with major market indexes, where big companies dominate but smaller firms still play a supporting role. Large and mega caps tend to be more stable, widely followed, and liquid, which can lower volatility and trading frictions. Smaller companies can add growth potential and diversification but also increase swings. This mix is sensibly constructed: it leans on big, established businesses while keeping some room for smaller‑company upside. If volatility feels too high, slightly trimming small and micro caps can reduce noise.

Redundant positions Info

  • WELLS FARGO DISCIPLINED U.S. CORE FUND CLASS C
    WELLS FARGO LARGE CAP CORE FUND CLASS C
    WELLS FARGO LARGE CAP CORE FUND CLASS A
    High correlation
  • WELLS FARGO DIVERSIFIED CAPITAL BUILDER FUND CLASS A
    WELLS FARGO DIVERSIFIED CAPITAL BUILDER FUND CLASS C
    High correlation

Several funds in the portfolio are highly correlated, especially the various Wells Fargo large‑cap and diversified builder funds. Correlation describes how often investments move in the same direction at the same time; highly correlated funds don’t add much diversification, especially in market downturns when diversification matters most. Here, owning multiple share classes or near‑clone strategies essentially stacks similar risks while adding extra complexity and cost. Consolidating overlapping holdings into fewer core positions with similar exposure could keep the same overall market stance but streamline monitoring. Where practical, mixing in funds with distinct styles or regions can further lower the chance that everything moves together in a rough market patch.

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.

Efficient Frontier analysis suggests the current mix isn’t using the existing ingredients as effectively as possible. The Efficient Frontier is a curve showing the best possible risk‑return trade‑offs using a given set of assets; being “more efficient” means getting higher expected return for the same risk or the same return for lower risk. Here, a more efficient configuration using only the existing funds could reach about 12.52% expected return at the current risk level, which is an upgrade. The fully optimized version keeps that expected return with a defined risk of 16.7%. Adjusting weights and cutting redundant, highly correlated holdings is the main path toward that improvement.

Dividends Info

  • WELLS FARGO LARGE CAP CORE FUND CLASS A 0.10%
  • WELLS FARGO INTRINSIC VALUE FUND CLASS A 0.70%
  • WELLS FARGO DIVERSIFIED CAPITAL BUILDER FUND CLASS A 0.50%
  • WealthBuilder Equity Fund C 0.50%
  • WealthBuilder Equity Fund A 1.20%
  • Weighted yield (per year) 0.18%

The overall dividend yield around 0.18% is very low, even by growth‑equity standards. Dividends are cash payments from investments that can provide steady income, which some investors use for spending or as a buffer in volatile markets. In this case, the portfolio clearly prioritizes capital appreciation rather than income, which fits a growth‑first mindset but is not ideal for anyone relying on investment cash flow. If income is a goal now or in the near future, nudging a portion into higher‑yielding assets or more income‑oriented strategies could help. If the main goal is compounding, low yield may be perfectly acceptable as long as total return remains strong over time.

Ongoing product costs Info

  • WELLS FARGO LARGE CAP CORE FUND CLASS A 1.07%
  • WELLS FARGO LARGE CAP CORE FUND CLASS C 1.82%
  • WELLS FARGO INTRINSIC VALUE FUND CLASS A 0.82%
  • WELLS FARGO DIVERSIFIED CAPITAL BUILDER FUND CLASS A 1.08%
  • WELLS FARGO DIVERSIFIED CAPITAL BUILDER FUND CLASS C 1.83%
  • WELLS FARGO DISCIPLINED U.S. CORE FUND CLASS C 1.59%
  • FIDELITY ADVISOR INTERNATIONAL CAPITAL APPRECIATION FUND CLASS C 1.87%
  • WealthBuilder Equity Fund C 1.74%
  • WealthBuilder Equity Fund A 0.99%
  • Weighted costs total (per year) 1.72%

The total expense ratio (TER) of roughly 1.72% is quite high compared with many modern options. TER is the annual fee charged by funds, and even a 1% difference can compound massively over 20–30 years, quietly eating into returns. The C‑share classes are particularly expensive, while A‑shares are lower but still not cheap. On the plus side, despite these costs, historic returns have been solid, which shows the strategy has still delivered value. That said, reducing fees where possible is one of the most reliable ways to improve long‑term outcomes. Moving gradually toward lower‑cost vehicles while maintaining similar exposures could boost net performance without increasing risk.

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