Do You Favor One Investment Style over Another?

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Do You Favor One Investment Style over Another?

The Morningstar Style Box™ can help you make sure that your portfolio is still diversified. Based on a fund’s most recent portfolio, the style box will not only tell you whether your manager has gone whole hog into large-value stocks, but it can also lead you to funds that bear little resemblance to one another. After all, value funds don’t act much like growth portfolios, and small-cap funds behave differently from large-cap offerings. In style box lingo, opposite corners should attract. If you’re too heavy in large value, try increasing your position in large-growth, small-value, or small-growth offerings.