How to Calculate the Percentage Invested in Stock
When managing a portfolio, the percentage of stocks compared to other investments in the portfolio should be of interest to you. If you have a large percentage of stocks in your portfolio, it constitutes a riskier portfolio overall; it also has a bigger opportunity for growth over the long term. To determine how much of your portfolio is in stocks, you must perform a simple calculation. Once you know the percentage of stock in your portfolio, you can make more accurate decisions as to how your portfolio should be allocated.
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Instructions
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1
Get an account statement for your investment account. Your broker may send you statements in the mail periodically or you may log in to your online account access.
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Find the total balance of your account. If you have a statement, this number should be at the bottom of the statement in the "Totals" section. Make a note of the total account balance.
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Add up the value of all of the stocks in your portfolio. In the "Account Statement" section, you can see the value of each stock that you own. Add up all of those numbers to determine the dollar value of the stock in your portfolio. On certain statements, the value of your stock holdings is totaled up already and you can skip that step.
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Divide the total value of the stock holdings in the portfolio by the total value of the portfolio itself. For example, if the amount of stock you have in the portfolio is worth $80,000 and the total portfolio balance is $100,000, this means that your stock holdings percentage is 80 percent.
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Tips & Warnings
As you get older, you may consider lowering the percentage of stock you have in your portfolio and increasing the percentage of bonds. This way, your portfolio becomes less risky as you get closer to retirement.
