Highly aggressive, concentrated portfolios need not have any more absolute risk than funds which tra...
Highly aggressive, concentrated portfolios need not have any more absolute risk than funds which track market indices, according to Ed Burke, manager of the Invesco Perpetual UK Aggressive fund. He said the FTSE All-Share Index in itself is high risk, in absolute terms, because of its concentration of the largest companies. The top 15 stocks in the market, ranked by their weighting, account for 52.36% in the All-Share, while the top five alone account for 31.9%. 'So if one had a completely indexed portfolio, over half the assets would be accounted for by 15 stocks and almost one third...
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