Underweight

By | 2017-09-14T09:54:42+00:00 14th September 2017|

Being ‘underweight’ in the financial world is when a fund has a lower percentage weighting in an asset class, stock, sector or geographical region than the index or benchmark against which it is measured. For example, if a fund has a 7% weighting in Asian equities, but its benchmark has a 10% weighting, the fund is 3% underweight.