In this Q&A episode, we tackle a common concern about the Kernel Global 100 fund: concentration risk. With just 10 companies making up over 58% of the fund*, we'll explore whether this concentration is a feature or a bug of market-weighted indices.
Specifically, we chat about:
What is market-weighted indexing?
How does equal-weighted indexing differ?
What are the advantages and disadvantages of concentration?
What risks should investors consider?
Why do some companies dominate the index?
When might concentration be beneficial?
As at 30 October 2024.
**DISCLAIMER**
For more information on risks and other features of the Kernel Funds and the Kernel KiwiSaver Plan, please see the Product Disclosure Statements, available at www.kernelwealth.co.nz. You can read our Terms of Use at https://kernelwealth.co.nz/terms-and-conditions.
This information is general only, is not personal financial advice, and is not a recommendation to invest in any fund or adopt any particular strategy.
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