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Risks Identified   
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Actions Taken     
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Risks Accepted  

Portfolio Strength

Portfolio Valuation


Downside Potential

Your portfolio has a downside potential of ₹ -92 K (9.6% of Portfolio)


Your equity portfolio is over-exposed to BFSI sector.

BFSI

Exposure: Current: 27.78%    After Action: 0%  

In this sector 3 stocks have Business Risk,4 stocks have Valuation Risk.

SBI

CMP: 272 | ₹69 K (7.3% of Portfolio)

1
Risk

SRSector Exposure

ICICI Bank

CMP: 292 | ₹53 K (5.5% of Portfolio)

1
Risk

SRSector Exposure

HDFC Bank

CMP: 1788 | ₹41 K (4.3% of Portfolio)

2
Risks

SRSector Exposure
VRValuation Risk

Max Financial

CMP: 600 | ₹30 K (3.1% of Portfolio)

2
Risks

SRSector Exposure
BRBusiness Risk

Axis Bank

CMP: 493 | ₹25 K (2.6% of Portfolio)

1
Risk

SRSector Exposure

Federal Bank

CMP: 111 | ₹12 K (1.3% of Portfolio)

2
Risks

SRSector Exposure
VRValuation Risk

ICICI Prudential

CMP: 438 | ₹11 K (1.1% of Portfolio)

2
Risks

SRSector Exposure
BRBusiness Risk

HDFC

CMP: 1778 | ₹11 K (1.1% of Portfolio)

2
Risks

SRSector Exposure
VRValuation Risk

Max India

CMP: 138 | ₹8 K (0.8% of Portfolio)

2
Risks

SRSector Exposure
BRBusiness Risk

Shriram Trans. Fin

CMP: 1054 | ₹5 K (0.6% of Portfolio)

1
Risk

SRSector Exposure

Chola. Invest & Fin.

CMP: 1157 | ₹1 K (0.1% of Portfolio)

2
Risks

SRSector Exposure
VRValuation Risk

FAQs: Sector Exposure Risk

When you invest a significant portion of your portfolio, typically more than 25%, in a single sector, or in multiple sectors that are highly correlated, your portfolio is subject to sector exposure risk.

Companies in the same sector are likely to be impacted by the same economic factors. Or sometimes the same economic factor adversely impacts multiple sectors. For example a sharp increase in interest rates is likely to have a negative effect on both banking and infrastructure sectors. The market reacts and prices fall, sometimes sharply. Therefore a large exposure to a single sector, or correlated sectors, could result in a drastic fall in your portfolio market value.

Sector exposure may not always be a bad thing. Taking this risk is justified only when compensated with good returns. For this you must be sure that the sector/companies will bounce back in the time frame you are willing to remain invested and that the current prices are very attractive.

It is best to consult a fiduciary investment advisor before chasing higher returns at the cost of sector exposure risk.

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