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Funds 501: Avoiding Portfolio Overlap

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1.
If you own a lot of growth funds, chances are you're overweight in what sector of the market?
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Technology. Current growth managers lean toward tech stocks.
2.
What do boutique funds do?
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Specialize in one thing. A boutique fund will specialize in one thing, whether it is an investment objective, a part of the world, or some other aspect of investing.
3.
To avoid overlap, how many large-blend funds should you own if you already have a large-value and a large-growth fund?
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Maybe none. Because the large-cap universe is small, there's little need to own a large-blend fund if you already have funds from the large-value and large-growth categories.
4.
If you find that you don't have a lot of overlap in your portfolio holdings, you may still be overexposed to one or two sectors of the market.
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True. Many times, a fund will have a lot of holdings in one sector. For example, a growth fund may have a lot of tech or pharmaceutical stocks.
5.
For purposes of diversification, which parts of the Morningstar Style Box should attract each other?
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Opposite corners. Based on how the style box is structured, opposite corners will show the diversity.