Learn / Understanding investing
What is a portfolio, and why does the mix matter?
How is my money split, and is that what I meant?
Video coming soon
In this lesson
- Your portfolio is everything you own in the account. Your cash is part of it. Rendity shows it in the allocation ring as its own slice next to the stocks.
- Each slice of the allocation ring is a share of today's value. The middle shows what everything is worth today. Around it you see how much rides on each single holding.
- Two big slices from the same industry are one bet. On a bad day for that industry, both fall together. This is called concentration risk.
The example: Google and Amazon
The sample portfolio holds six stocks from six industries, plus cash. In the allocation ring they are GOOG, AMZN, BRK B, V, DPZ and ZTS.
Google and Amazon together make up a large part of the portfolio. Both are big tech. On a bad day for tech they fall together, so this is concentration risk by industry.
The mix also drifts by itself. Zoetis lost more than half its value, and its slice shrank without anything being sold. Google rose and took a bigger slice.
You can also use the allocation ring the other way round and look for an industry the portfolio does not have yet.
Sample account, not real data, not investment advice.
Where to find it in Rendity
On the Dashboard, the Allocation card shows the allocation ring with today's value in the middle. Further down, the Options Planner lists the same positions.
Included inSeed Sprout Tree Orchard
Terms from this lesson
Education only, not investment advice. Tax topics are not tax advice.