A balanced approach to long-term growth with a focus on diversified funds and moderate risk

Report created on Aug 26, 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 structured around three major funds: Vanguard Target Retirement 2045 Fund, Fidelity Capital Appreciation Fund, and Fidelity Diversified International Fund, making up a significant portion of the investment. This mix suggests a balanced approach, leaning towards stocks with a minor allocation in bonds and cash. The emphasis on retirement and capital appreciation funds indicates a forward-looking strategy aimed at long-term growth, while the international fund adds a layer of global diversification.

Growth Info

Historically, the portfolio has achieved a Compound Annual Growth Rate (CAGR) of 9.06%, with a maximum drawdown of -31.76%. This performance is indicative of a balanced risk-return profile, suitable for investors with a moderate risk tolerance. The days contributing to 90% of the returns highlight the importance of staying invested over the long term, as significant gains can come from relatively few, unpredictable days.

Projection Info

Utilizing Monte Carlo simulations, which forecast potential outcomes based on historical data, the portfolio's future performance ranges significantly. The 50th percentile projection suggests a 148.1% return, while the 5th and 67th percentiles indicate potential downside and upside. It's crucial to note that while these simulations provide a spectrum of possibilities, they cannot predict future market conditions with certainty.

Asset classes Info

  • Stocks
    89%
  • Bonds
    9%
  • Cash
    2%

The allocation across asset classes with 89% in stocks and 9% in bonds offers a growth-oriented stance with a cushion of income and stability from bonds. The small cash holding enhances liquidity. This composition aligns with the portfolio's balanced risk profile, aiming for long-term capital appreciation while mitigating volatility through bond exposure.

Sectors Info

  • Technology
    23%
  • Financials
    18%
  • Industrials
    15%
  • Consumer Discretionary
    11%
  • Health Care
    11%
  • Telecommunications
    7%
  • Consumer Staples
    5%
  • Basic Materials
    4%
  • Energy
    3%
  • Real Estate
    2%
  • Utilities
    2%

Sectoral allocation is diversified across technology, financial services, industrials, and more, reducing sector-specific risks. The heavy tilt towards technology and financial services is consistent with a growth-focused strategy but warrants monitoring for overexposure to market fluctuations in these sectors.

Regions Info

  • North America
    63%
  • Europe Developed
    20%
  • Japan
    6%
  • Asia Emerging
    5%
  • Asia Developed
    3%
  • Australasia
    1%
  • Latin America
    1%
  • Africa/Middle East
    1%

Geographic diversification is strong, with a significant North American focus complemented by developed European and emerging Asian markets. This global exposure positions the portfolio to benefit from growth across different economies while mitigating the risk tied to any single region.

Market capitalization Info

  • Mega-cap
    40%
  • Large-cap
    26%
  • Mid-cap
    16%
  • Small-cap
    5%
  • Micro-cap
    1%

The market capitalization breakdown, favoring mega and big-cap stocks, suggests a preference for established, less volatile companies. This allocation supports the portfolio's balanced risk approach, although the inclusion of medium, small, and micro-caps introduces growth potential with manageable 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.

Despite its current efficiency, the portfolio has room for optimization towards an expected return of 10.72% at a similar risk level. This suggests that with strategic reallocation, the portfolio could potentially achieve higher returns without significantly increasing risk, highlighting an opportunity for refinement.

Dividends Info

  • FIDELITY CAPITAL APPRECIATION FUND FIDELITY CAPITAL APPRECIATION FUND 0.20%
  • FIDELITY DIVERSIFIED INTERNATIONAL FUND FIDELITY DIVERSIFIED INTERNATIONAL FUND 1.70%
  • Vanguard Target Retirement 2045 Fund Investor Shares 2.00%
  • Weighted yield (per year) 1.46%

The dividend yields from the funds contribute to the portfolio's income, complementing capital gains for total return. The yields vary, with the Vanguard Target Retirement 2045 Fund offering a higher income component. This approach balances growth with income, suitable for investors seeking both capital appreciation and cash flow.

Ongoing product costs Info

  • FIDELITY CAPITAL APPRECIATION FUND FIDELITY CAPITAL APPRECIATION FUND 0.56%
  • FIDELITY DIVERSIFIED INTERNATIONAL FUND FIDELITY DIVERSIFIED INTERNATIONAL FUND 0.59%
  • Vanguard Target Retirement 2045 Fund Investor Shares 0.08%
  • Weighted costs total (per year) 0.29%

The Total Expense Ratio (TER) averages to 0.29%, which is relatively low, especially considering the active management of the Fidelity funds. Lower costs translate to higher net returns over time, marking an efficient cost structure within this portfolio.

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