What the free score checks
Flowvest's free score estimates diversification strength from holding count, allocation balance, cash drag, and rebalancing discipline, then turns those inputs into a 0-100 health score.
Step 1
Start with weight, not ticker count
Owning 30 stocks can still be concentrated if three winners became the majority of the account. The first check is position weight: what percentage of the portfolio depends on each holding? A practical review separates tiny positions from positions large enough to affect your life if they fall sharply.
- •List each holding as a percentage of the total portfolio, not just as a dollar amount.
- •Flag any single stock above 10% and any top-five group above 40% to 50%.
- •Treat overlapping funds as shared exposure when they own the same mega-cap names.
Step 2
Check sector and asset-class exposure
A portfolio can pass the position-count test and still fail because every fund is tilted toward the same sector. Technology-heavy index funds, employer stock, and growth ETFs often overlap. A second layer asks whether the portfolio can survive different market environments without one economic theme deciding everything.
- •Group holdings by sector, geography, and asset class before judging the mix.
- •Compare stock, bond, and cash weights against your time horizon and risk tolerance.
- •Look for hidden duplication across ETFs, mutual funds, and individual stocks.
Step 3
Use rebalancing as the reality check
Diversification only works if the portfolio is periodically brought back to target. If you never rebalance, the highest-returning slice eventually becomes the largest risk. A quarterly or threshold-based review keeps diversification intentional instead of accidental.
- •Set target ranges before the market moves, not after a stressful week.
- •Rebalance when an asset class drifts meaningfully outside its planned range.
- •Use new contributions to correct drift when selling would create taxes or friction.
Check whether your diversification is strong enough before your next contribution.
The calculator below is free, shows the score instantly, and does not require brokerage credentials. Email is optional if you want the follow-up plan.
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FAQ
Common questions about this portfolio check
How many stocks do I need to be diversified?
There is no universal number, because weight and overlap matter more than ticker count. Broad funds may provide diversification with a few holdings, while many individual stocks can still be concentrated if they share the same sector or factor exposure.
Can index funds still be too concentrated?
Yes. Market-cap-weighted index funds can become concentrated in the largest companies or sectors. That does not make them bad, but it does mean investors should understand their actual exposure instead of assuming every index fund is evenly balanced.
What is the fastest way to check diversification?
Run a quick portfolio health check, then review the top holdings, sector mix, asset-class balance, and rebalancing habits. Flowvest's free tool gives a first-pass score without requiring brokerage login credentials.