Autoinvest overweight

🥧 Pies & AutoInvest
1

Hello,

I am new to investing and wanted to understand the weightage in the autoinvest feature. (Link for the weightage: here).

In the link above, the example says Tesla’s actual value is now 37% though its target value was intended to be 30% and hence overweight. Can anyone please explain with a simple example by taking 2 or 3 sticks in a pie to help me understand what does it mean to have a target ‘overweight’?

Cheers

2

Nothing too bad.

Basically if your intention is to have 30% of the value of that pie in Tesla then the Tesla price rises much faster then the others in the pie it would become ‘overweight’ but only relative to the nominal percentages you set up at the beginning.

3

aah, great. thanks :slight_smile: