How to Figure the Percentage of Investment in a Portfolio
Monitoring the asset allocation of your portfolio helps maintain a diversified mix of investments.
Jupiterimages/BananaStock/Getty Images
When measuring the percentage of investment in a portfolio, you can calculate the percentage of a type of investment, such as the percentage of your portfolio that is invested in stocks, or the amount you have invested in a specific sector, such as technology. Knowing how your assets are allocated helps you maintain a diversified portfolio and avoid putting all of your eggs in one basket. To calculate the percentage of investment in your portfolio, you need to know the value of each of your investments.
Add the value of all of the investments of the specified type to calculate their total value. For example, if you want to figure the percentage of tech stocks in your portfolio, add the value of all of your tech stock holdings.
Step 2Add the value of all your investments -- including the tech investments -- to calculate the total value of the portfolio.
Step 3Divide the value of the specified subset of investments by the total portfolio value to calculate the portion of the portfolio. In this example, if your tech stocks are worth $10,000 and the total portfolio is worth $50,000, divide $10,000 by $50,000 to get 0.2.
Step 4Multiply the result by 100 to calculate the percentage of investment in a portfolio. Finishing the example, multiply 0.2 by 100 to find that 20 percent of your portfolio is invested in tech stocks.
References
Writer Bio
Based in the Kansas City area, Mike specializes in personal finance and business topics. He has been writing since 2009 and has been published by "Quicken," "TurboTax," and "The Motley Fool."