Strategy Intermediate: Avoiding Overlap When Building a Portfolio

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1.
If you want to diversify a large-growth portfolio, add _______.
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A small-value fund. When it comes to style boxes and diversification, opposites attract. If you want to diversify a large-growth fund, add its opposite: a small-value fund.
2.
What is a boutique?
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A fund family that specializes in one style of investing. Boutique families specialize in a specific style of investing.
3.
To avoid portfolio overlap, _______.
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Manage your sector weightings. Buying funds run by the same manager or from the same boutique fund family can lead to stock overlap. Buying funds with different sector weightings is a tactic for avoiding overlap.