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Overweight and Underweight

retail stock investorOverweight

Overweight is the situation when an investment portfolio contains an excess amount of a stock as compared to other stocks in the investment portfolio.Mostly portfolio manager uses the overweight strategy to increase the collective gain of the investment portfolio.Portfolio manager also expects that excessively bought security will outperform other stocks in the portfolio.

Underweight

Overweight is the situation when an investment portfolio contains  small amount of a stock as compared to other stocks in the investment portfolio.Like overweight strategy underweight strategy is also used by the portfolio manager to increase the collective gain of the investment portfolio,as it is expected that the under bought stock will perform very badly in the coming days.

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About Emaad Qureshi