When diversifying your investment portfolio, the baseball strategy of swinging for singles and doubles instead of home runs comes to mind. Having too much exposure by way of a concentrated position — the equivalent of banking on home runs to win — can increase the risk of your overall portfolio. A concentrated position refers to…

Tiffany Lam-Balfour writes for NerdWallet. Email: tlambalfour@nerdwallet.com. Twitter: @@TiffLamBalfour.

The article Exchange Funds: One Way to Reduce Concentrated Stock Risk originally appeared on NerdWallet.

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