How to Calculate Your Overall in Stocks
Figure the amount of your investments you have allocated to stock.
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It is important to monitor the overall amount you have invested in stocks in your portfolio to stay on track with your investment strategy. As stock prices fluctuate, the overall value of your holdings changes, which can throw your portfolio off balance. You can calculate the overall dollar amount you have invested in stocks, as well as your allocation to stocks as a percentage of your portfolio. Your investment in stocks includes those you own individually and those you own as part of an investment fund, such as a mutual fund.
Multiply the number of shares of each stock you own by its current market price to determine your investment in each stock. For example, assume you own 1,000 shares of a $50 stock and 3,000 shares of a $25 stock. Multiply 1,000 by $50 to get $50,000. Multiply 3,000 by $25 to get $75,000.
Step 2Add your investment in each stock to determine your total investment in individual stocks. In this example, add $50,000 to $75,000 to get $125,000.
Step 3Find out the number of shares and price per share of each investment fund you own from your broker. Include funds that invest only in stocks, such as an exchange-traded fund, and funds that invest in stocks and bonds, such as a hybrid mutual fund. Continuing the example, assume you own 10,000 shares of a $30 stock ETF and 10,000 shares of a $40 hybrid mutual fund.
Step 4Multiply the number of shares of each fund by its price per share to figure your investment in each fund. In this example, multiply 10,000 by $30 to get $300,000 in the stock fund. Multiply 10,000 by $40 to get $400,000 in the hybrid fund.
Step 5Multiply the percentage of each hybrid fund’s portfolio that it invests in stocks by the value of your investment in the fund to determine the value of your stock investment in the fund. You can find the percentage of a hybrid fund’s stock holdings on its website. In this example, assume your hybrid fund invests 60 percent of its portfolio in stocks. Multiply 60 percent, or 0.6, by $400,000 for a $240,000 stock ownership in that fund.
Step 6Add together your investments in individual stocks, all-stock investment funds and stock holdings in hybrid funds to determine your overall investment in stocks. In this example, add together $125,000, $300,000 and $240,000 to get $665,000 as your overall investment in stocks.
Step 7Divide your overall stock investment by your portfolio’s total value and multiply by 100 to determine stock ownership as a percentage of your portfolio. Concluding the example, assume your portfolio has a $1 million value. Divide $665,000 by $1 million to get 0.665. Multiply 0.665 by 100 to get 66.5 percent, which means 66.5 percent of your portfolio is exposed to stocks.