In this Q&A episode, we tackle a common concern about the Kernel Global 100 fund: concentration risk. With just 10 companies making up over 58% of the fund*, we'll explore whether this concentration is a feature or a bug of market-weighted indices.

Specifically, we chat about:

• What is market-weighted indexing?
• How does equal-weighted indexing differ?
• What are the advantages and disadvantages of concentration?
• What risks should investors consider?
• Why do some companies dominate the index?
• When might concentration be beneficial?

As at 30 October 2024.

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Disclaimer:
Investing involves risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.

The information provided should not be relied upon as investment advice or recommendations and should not be considered specific legal, investment or tax advice.

Any information we provide is general only and current at the time of writing.

Kernel Wealth Limited is the manager and issuer of the Kernel KiwiSaver Plan and Kernel Funds scheme. The Product Disclosure Statements are available at www.kernelwealth.co.nz