Minimum and Maximum Allocation Selection

Set precise max/min weightings for each asset in your portfolio strategy to control asset representation and ensure balanced diversification.

This function is not available for the strategies: Equal and market capitalization.

Tailoring Your Portfolio with Max/Min Weighting

The Max/Min Weighting feature is a critical tool in customizing your portfolio to achieve the desired level of diversification and balance. By defining the maximum or minimum weighting for each asset, you gain control over the composition of your portfolio, ensuring that each asset contributes appropriately to your investment strategy.

How to Utilize Max/Min Weighting:

  • Setting Minimum Weighting: By applying a minimum weighting, such as 10%, you mandate that each asset in your portfolio constitutes at least 10% of the total portfolio value. This ensures a significant presence of each selected asset, contributing to a diversified investment approach.

  • Applying Maximum Weighting: Conversely, with a maximum weighting limit, say 25%, you cap each asset's representation to no more than 25% of the portfolio's total value. This prevents any single asset from dominating the portfolio, mitigating risk concentration.

Flexibility in Weighting Parameters:

  • For investors not requiring a minimum asset size, setting the parameter to 0% offers flexibility, allowing any proportion of the asset in the portfolio.

  • Similarly, if avoiding a cap on asset size is preferred, setting the maximum weighting parameter to 100% removes any upper limit, providing complete freedom in asset allocation.

Choosing Your Asset Weighting Strategy:

Carefully select the maximum and minimum weighting for each asset within your strategy to tailor your portfolio precisely. This step is crucial in sculpting a portfolio that not only aligns with your investment goals and risk tolerance but also adheres to your strategic vision for asset distribution.

This element of portfolio configuration empowers investors to meticulously craft their investment approach, ensuring a balanced and well-considered asset allocation. By fine-tuning the max/min weighting parameters, you set the foundation for a portfolio structured to navigate market dynamics effectively, aligning closely with your financial objectives.

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