Concentrated Portfolio

Concentrated Portfolio - A concentrated portfolio is a portfolio that has a small variation of different securities in order to create a level of diversification that creates a well-rounded investment portfolio. This type of diversification is unlike the higher types of diversification as they generally carry a much greater number of securities in order to reduce the impact of the amount of risk. Most of the concentrated portfolios have, as a rule, less than ten stocks in them. By keeping a small complex capital structure, the risk to the investor remains at a minimum when the securities do the ditsy-doodle.