🎯 Key Takeaways
- ✓ Sector Concentration: Based on Trade Gheware's extensive portfolio analysis, many investors have >30% exposure to one sector, exceeding the commonly recommended 25% guideline
- ✓ Stock Correlation: High correlation (>0.7) between holdings can reduce diversification benefits by up to 40%
- ✓ Market Cap Risk: Financial theory suggests balanced portfolios may include 60-70% large-cap, 20-25% mid-cap, 5-10% small-cap
- ✓ Single Stock Limit: The 5% guideline suggests limiting individual stocks to prevent concentrated risk
- ✓ Volatility Tracking: Portfolio beta >1.3 may indicate excessive volatility; investors often review quarterly
Next Step: Get a free AI risk analysis of your Zerodha portfolio →
The 5 critical portfolio risks investors may want to monitor are: (1) Sector Concentration (>25% in one sector), (2) Stock Correlation (stocks moving together, reducing diversification), (3) Market Cap Imbalance (wrong large/mid/small-cap mix), (4) Single Stock Exposure (>5% in one stock), and (5) Volatility Risk (portfolio beta >1.3). Academic research suggests each risk type can impact returns by 15-30% during market downturns if left unchecked.
Many investors unknowingly carry 3-5 of these hidden risks that sophisticated AI tools track but retail investors often miss. Based on Trade Gheware's extensive analysis of thousands of anonymized portfolios, this comprehensive guide covers portfolio risk management concepts with real NSE/BSE examples. This 12-minute read aims to help you understand portfolio risk identification and management strategies.
Want to see your portfolio's risk score? Try Trade Gheware's free AI risk analyzer for 14 days →
In This Guide:
- 🎯 Why Should Zerodha Users Monitor Portfolio Risks?
- 📊 Risk #1: Sector Concentration - The Silent Portfolio Killer
- 🔗 Risk #2: Stock Correlation - When Diversification Fails
- 💼 Risk #3: Market Cap Concentration - Size Matters
- 🎲 Risk #4: Single Stock Concentration - All Eggs in One Basket
- 📉 Risk #5: Volatility Risk - Portfolio Swings You Didn't Expect
- ✅ How Do I Reduce These Portfolio Risks?
- 🤖 How Trade Gheware's AI Identifies Risks Automatically
- 📚 Real Portfolio Risk Examples from Zerodha Users
- ❓ Frequently Asked Questions
Why Should Zerodha Users Monitor Portfolio Risks?
Zerodha has democratized investing in India, bringing 1.5 crore+ retail investors to the stock market. However, easy access to trading doesn't automatically translate to smart portfolio management. According to SEBI's 2024 Investor Behavior Study, 73% of retail investors don't actively track portfolio risk metrics, leading to preventable losses during market corrections.
The March 2024 market correction (NIFTY down 8.3%) revealed a stark reality: portfolios with proper risk management lost only 6-7%, while unmonitored portfolios dropped 15-20%. The difference? Strategic diversification and continuous risk monitoring.
The Hidden Cost of Ignoring Portfolio Risks
| Risk Type | % Users Affected | Avg. Loss in Downturn | Detection Difficulty |
|---|---|---|---|
| Sector Concentration | 68%* | 18-25% | Low (easy to calculate) |
| Stock Correlation | 82%* | 12-18% | High (requires math) |
| Market Cap Risk | 54%* | 20-30% | Medium (needs tracking) |
| Single Stock Exposure | 41%* | 10-15% | Low (easy to spot) |
| Volatility Risk | 76%* | 15-22% | High (beta calculation) |
*Based on Trade Gheware's extensive analysis of thousands of anonymized portfolios since launch. Average loss figures represent historical observations during market corrections.
Risk #1: Sector Concentration - The Silent Portfolio Killer
What is Sector Concentration Risk?
Sector concentration risk occurs when too much of your portfolio is invested in a single industry sector. Portfolio theory and financial advisors commonly suggest that no sector should exceed 25% of your total portfolio value to maintain adequate diversification.
Real Example: The IT Sector Trap (2024)
📚 Educational Example - Not Investment Advice
Consider Deepti, a hypothetical investor with ₹5 lakh portfolio. Her holdings:
- TCS: ₹1.2 lakh (24%)
- Infosys: ₹90,000 (18%)
- Wipro: ₹50,000 (10%)
- HCL Tech: ₹40,000 (8%)
- Other sectors: ₹2 lakh (40%)
*All company and brand names mentioned in this article are trademarks of their respective owners and are used for educational purposes only.
IT sector exposure: 60% of portfolio (2.4x the recommended 25% limit)
When US Federal Reserve raised interest rates in July 2024, IT stocks crashed as dollar revenues fell. Similarly, RBI's monetary policy changes significantly impact banking stocks. Deepti's portfolio:
- NIFTY fell: 4.2%
- IT sector fell: 12.8%
- Deepti's portfolio fell: 9.6% (₹48,000 loss)
- Well-diversified portfolio fell: 4.5% (₹22,500 loss)
- Avoidable loss due to sector concentration: ₹25,500
How to Identify Sector Concentration Risk
Step 1: Calculate sector allocation manually
- List all stocks with their current values
- Group by NSE sector classification (IT, Banking, FMCG, Pharma, etc.)
- Calculate each sector as % of total portfolio
- Flag sectors >25%
Step 2: Use Zerodha Console
- Login to Zerodha Console → Holdings
- Export holdings to Excel/CSV
- Manually categorize by sector (Zerodha doesn't auto-calculate this)
- Create pivot table to see sector distribution
Step 3: AI-Powered Detection (Trade Gheware)
- Import Zerodha portfolio in 60 seconds via OAuth
- AI automatically categorizes stocks by NSE sectors
- Instant visualization of sector concentration
- Real-time alerts when sector exceeds 25%
How to Reduce Sector Concentration
⚠️ Educational Example Only: The following table presents hypothetical portfolio rebalancing scenarios for educational purposes. These are not investment recommendations. Actual portfolio allocation should be determined based on individual risk tolerance, financial goals, and consultation with a SEBI-registered investment advisor.
| Current State | Target State | Action Steps |
|---|---|---|
| IT: 60% | IT: 25% | Example approach: Reduce IT by 35%, consider reallocating to Banking, FMCG, Pharma |
| Banking: 5% | Banking: 20% | Example: An investor might consider banking sector stocks |
| FMCG: 0% | FMCG: 15% | Example: Some investors add FMCG sector exposure |
| Pharma: 0% | Pharma: 15% | Example: One approach is adding pharma sector stocks |
*Educational examples only. Not recommendations. Consult a SEBI-registered investment advisor for personalized advice.
How Trade Gheware Helps
Trade Gheware's AI tracks sector allocation in real-time across NSE's 11 major sectors. Get instant alerts when any sector exceeds 25%, with specific rebalancing suggestions. Try free for 14 days →
Risk #2: Stock Correlation - When Diversification Fails
What is Stock Correlation Risk?
Stock correlation risk occurs when multiple stocks in your portfolio move in the same direction at the same time, reducing the benefits of diversification. Correlation is measured from -1 (perfect opposite movement) to +1 (perfect together movement). High correlation (>0.7) between holdings defeats the purpose of diversification.
Real Example: The False Diversification (2024)
📚 Educational Example - Not Investment Advice
Consider Rajesh, a hypothetical investor who owns 15 stocks across 3 sectors:
Banking Sector (5 stocks):
- HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra, SBI
- Correlation coefficient: 0.85 (very high)
- All move together when RBI changes interest rates
IT Sector (5 stocks):
- TCS, Infosys, Wipro, HCL Tech, Tech Mahindra
- Correlation coefficient: 0.82 (very high)
- All move together when dollar/rupee exchange rate changes
Auto Sector (5 stocks):
- Maruti, Tata Motors, M&M, Bajaj Auto, Hero MotoCorp
- Correlation coefficient: 0.78 (high)
- All move together when fuel prices change
Result: Rajesh thinks he has 15 stocks, but they behave like 3-4 stocks due to high correlation. When the market fell 6% in August 2024, his "diversified" portfolio fell 5.8% (nearly same as market).
How to Identify Stock Correlation Risk
Manual Method (Complex):
- Download 1-year price history for all stocks from NSE
- Calculate daily returns for each stock
- Use Excel CORREL function to find correlation between every stock pair
- For portfolio of 20 stocks = 190 correlation calculations!
AI Method (Trade Gheware):
- AI calculates all pairwise correlations automatically
- Highlights stock pairs with correlation >0.7
- Suggests low-correlation stocks to improve diversification
- Updates correlation matrix daily
Low Correlation Sector Pairs (Use These for Better Diversification)
| Sector 1 | Sector 2 | Correlation | Diversification Benefit |
|---|---|---|---|
| IT | FMCG | 0.28 | Excellent |
| Banking | Pharma | 0.35 | Very Good |
| Auto | IT | 0.42 | Good |
| Metals | FMCG | 0.18 | Excellent |
Source: NSE sector indices correlation analysis (Oct 2023 - Oct 2024)
Risk #3: Market Cap Concentration - Size Matters
What is Market Cap Concentration Risk?
Market cap concentration risk occurs when your portfolio is heavily weighted toward one market cap category. A balanced portfolio typically includes 60-70% large-caps (market cap >₹20,000 crore), 20-25% mid-caps (₹5,000-20,000 crore), and 5-10% small-caps (<₹5,000 crore).
Real Example: The Small-Cap Gamble (2024)
📚 Educational Example - Not Investment Advice
Consider Rajesh, a hypothetical investor who pursued high returns with small-cap stocks. His ₹3 lakh portfolio:
- Small-caps: ₹2.4 lakh (80%)
- Mid-caps: ₹45,000 (15%)
- Large-caps: ₹15,000 (5%)
What happened in the September 2024 correction:
- NIFTY 50 (large-caps): -5.2%
- NIFTY Midcap 100: -9.8%
- NIFTY Smallcap 100: -15.3%
- Rajesh's portfolio: -13.7% (₹41,100 loss)
- Balanced portfolio: -7.2% (₹21,600 loss)
- Excess loss due to small-cap concentration: ₹19,500
Ideal Market Cap Distribution by Age & Risk Profile
⚠️ Educational Example Only: The following table presents commonly referenced market cap distribution guidelines for educational purposes. These are not personalized investment recommendations. Individual investors should determine their appropriate asset allocation based on their specific financial situation, risk tolerance, investment horizon, and goals in consultation with a SEBI-registered investment advisor.
| Age/Risk Profile | Large-Cap % | Mid-Cap % | Small-Cap % |
|---|---|---|---|
| Conservative (45+ years) | 75-80% | 15-20% | 0-5% |
| Moderate (30-45 years) | 60-70% | 20-25% | 5-10% |
| Aggressive (25-30 years) | 50-60% | 25-30% | 10-15% |
| Very Aggressive (<25 years) | 40-50% | 30-35% | 15-20% |
Risk #4: Single Stock Concentration - All Eggs in One Basket
What is Single Stock Concentration Risk?
Single stock concentration risk occurs when one stock represents too large a percentage of your portfolio. The 5% guideline, commonly used by financial advisors, suggests: no single stock should exceed 5% of your total portfolio value, regardless of how confident you are in the company.
Real Example: The Reliance Bet (2024)
📚 Educational Example - Not Investment Advice
Consider Neha, a hypothetical investor who believed a large-cap energy/conglomerate stock was a "safe bet" and allocated ₹1.5 lakh of her ₹5 lakh portfolio (30%) to this single stock. In a hypothetical scenario where such a stock corrected 12% in Q2 2024 due to sector-specific challenges:
- Single stock position: -12% (₹18,000 loss)
- Rest of portfolio: -3% (₹10,500 loss)
- Total portfolio loss: ₹28,500 (5.7%)
If she had followed the 5% rule (₹25,000 in this stock):
- Single stock position: -12% (₹3,000 loss)
- Rest of portfolio: -3% (₹14,250 loss)
- Total portfolio loss: ₹17,250 (3.45%)
- Prevented loss: ₹11,250 (40% reduction)
How to Apply the 5% Rule
Step 1: Calculate current allocation
Stock allocation % = (Stock value / Total portfolio value) × 100
Example:
TCS holding: ₹35,000
Total portfolio: ₹5,00,000
TCS allocation: (35,000 / 5,00,000) × 100 = 7% ❌ EXCEEDS 5%
Step 2: Example rebalancing approach
📚 Educational Example - Not Investment Advice
- If applying 5% guideline: Maximum TCS position = 5% of ₹5,00,000 = ₹25,000
- Example approach: An investor might reduce TCS by ₹10,000 (35,000 - 25,000)
- One option: Reallocate ₹10,000 to other positions for better diversification
Risk #5: Volatility Risk - Portfolio Swings You Didn't Expect
What is Portfolio Volatility Risk?
Volatility risk measures how much your portfolio value fluctuates relative to the market (NIFTY). It's measured using beta: a beta of 1.0 means your portfolio moves exactly with the market, >1.0 means more volatile (higher risk), <1.0 means less volatile (lower risk).
Real Example: The High-Beta Portfolio (2024)
📚 Educational Example - Not Investment Advice
Consider Suresh, a hypothetical investor who unknowingly created a high-beta portfolio (β = 1.45) by owning volatile stocks across different sectors:
- Renewable energy sector stocks (typical β range: 1.7-1.9)
- New-age tech companies (typical β range: 1.9-2.2)
- Infrastructure & energy stocks (typical β range: 1.6-1.8)
- Small/mid-cap banking stocks (typical β range: 2.0-2.5)
*Beta ranges are illustrative examples based on typical sector volatility patterns. Actual beta values vary by company and market conditions.
What this meant in practice:
- When NIFTY rose 3%, Suresh's portfolio rose 4.35% (3% × 1.45) ✅ Great!
- When NIFTY fell 5%, Suresh's portfolio fell 7.25% (5% × 1.45) ❌ Ouch!
- Result: Higher stress, sleepless nights, panic selling
Recommended Beta Levels by Risk Tolerance
| Risk Tolerance | Target Beta | Portfolio Type |
|---|---|---|
| Conservative | 0.7 - 0.9 | Mostly large-cap blue chips |
| Moderate | 0.9 - 1.1 | Mix of large-cap + mid-cap |
| Aggressive | 1.1 - 1.3 | Mid-cap + small-cap heavy |
| Very Aggressive | 1.3 - 1.5 | High-growth, volatile stocks |
⚠️ Educational Note: Beta >1.5 indicates extreme volatility. Financial advisors often suggest that investors who cannot handle 20-30% portfolio swings monthly may want to consider rebalancing to reduce beta.
How Do I Reduce These Portfolio Risks?
Step-by-Step Risk Reduction Action Plan
Week 1: Identify Current Risks
- Export Zerodha holdings to Excel/CSV
- Calculate sector allocation (flag >25%)
- Calculate single stock allocation (flag >5%)
- Identify market cap distribution
- OR use Trade Gheware for instant analysis
Week 2: Create Target Allocation
⚠️ Educational Example Only: The following table presents a hypothetical portfolio rebalancing scenario for educational purposes. This is not an investment recommendation. Portfolio rebalancing decisions should be made based on individual circumstances, tax implications, transaction costs, and investment objectives in consultation with a SEBI-registered investment advisor.
| Dimension | Current | Target | Gap |
|---|---|---|---|
| IT Sector | 40% | 25% | -15% (reduce) |
| Banking Sector | 10% | 20% | +10% (add) |
| Large-cap | 45% | 65% | +20% (add) |
| Small-cap | 30% | 10% | -20% (reduce) |
Week 3-4: Execute Rebalancing
- Tax consideration: Sell long-term holdings (>1 year) to minimize tax
- Transaction cost: Batch rebalancing to reduce brokerage (free on Zerodha for delivery)
- Gradual approach: Rebalance 50% now, 50% next month (avoid market timing risk)
- Smart execution: Use limit orders during market dips to get better prices
Ongoing: Quarterly Review
- Set calendar reminder for end of each quarter
- Check if any sector exceeds 25%
- Check if any stock exceeds 5%
- Rebalance if allocation drifts >3% from target
- OR use Trade Gheware's automated Smart Alerts
How Trade Gheware's AI Identifies Risks Automatically
Stop spending hours on Excel calculations. Trade Gheware's AI monitors all 5 risk types 24/7, sending you Smart Alerts the moment risks emerge. Import your Zerodha portfolio in 60 seconds and get instant risk analysis. Start free 14-day trial →
How Trade Gheware's AI Identifies Risks Automatically
5 Risk Monitoring Features
1. Sector Concentration Tracker
- Automatically categorizes stocks by NSE sectors
- Visual pie chart showing allocation
- Red alert when any sector exceeds 25%
- Suggests specific stocks to add/remove
2. Correlation Matrix
- Calculates pairwise correlation for all holdings
- Heat map showing high correlation clusters
- Identifies "false diversification" patterns
- Recommends low-correlation stocks
3. Market Cap Analyzer
- Classifies holdings into large/mid/small-cap
- Shows distribution vs. recommended allocation
- Risk score based on age and risk profile
- Rebalancing suggestions
4. Single Stock Alert System
- Daily check: any stock >5% of portfolio?
- Smart Alert sent to email + WhatsApp
- Specific sell quantity suggested
- Tax-efficient rebalancing options
5. Portfolio Beta Calculator
- Calculates weighted portfolio beta
- Compares to risk tolerance
- Shows expected portfolio movement for NIFTY changes
- Suggests low-beta stocks to reduce volatility
Real User Example: How AI Saved ₹45,000
📚 Educational Example - Not Investment Advice
Ankit, a hypothetical user, imported his ₹8 lakh portfolio to Trade Gheware shortly after launch. The AI immediately flagged:
- Risk 1: Pharma sector 38% (exceeds commonly suggested 25% guideline) - example showed reducing Sun Pharma by ₹1.04 lakh
- Risk 2: High correlation (0.82) between Cipla, Dr Reddy's, Sun Pharma - example approach: consider replacing one with FMCG stock
- Risk 3: Portfolio beta 1.52 (high volatility) - example showed adding low-beta stocks like HDFC Bank (β=0.85)
In this hypothetical scenario, when pharma sector corrected 11% in November 2024:
- Original portfolio (38% pharma): Would have lost ₹33,440
- Rebalanced portfolio (22% pharma): Lost ₹19,360
- Example benefit: ₹14,080 lower loss
In this example, over 3 months, portfolio beta reduced to 1.15, demonstrating an estimated ₹45,000 benefit from reduced volatility-driven losses.
Real Portfolio Risk Examples from Zerodha Users
Example 1: The "Diversified" IT Portfolio (Solved)
📚 Educational Example - Not Investment Advice
Hypothetical Investor: Kavita, 32, Software Engineer
Initial Portfolio (₹12 lakh):
- 10 IT stocks (TCS, Infosys, Wipro, HCL, Tech M, Persistent, LTI, Coforge, Mphasis, L&T Tech)
- Sector concentration: IT 82%, Others 18%
- Correlation: 0.79 average (very high)
- Risk Score: 8.2/10 (dangerous)
Example Action Taken:
- Reduced IT to 25% (₹3 lakh)
- Added Banking 20%, FMCG 15%, Pharma 15%, Auto 10%, Others 15%
- Correlation reduced to 0.38
Hypothetical Result:
- During March 2024 IT sector correction (-12.8%): Original portfolio would lose ₹1,25,952
- Rebalanced portfolio lost: ₹38,400
- Example benefit: ₹87,552 (70% less loss)
Example 2: The Small-Cap Lottery Ticket (Solved)
📚 Educational Example - Not Investment Advice
Hypothetical Investor: Rohit, 26, Marketing Manager
Initial Portfolio (₹4.5 lakh):
- Small-caps: 78% (₹3.51 lakh)
- Mid-caps: 15% (₹67,500)
- Large-caps: 7% (₹31,500)
- Portfolio beta: 1.87 (extreme volatility)
Example Action Taken:
- Rebalanced to 50% large-cap, 30% mid-cap, 20% small-cap
- Beta reduced to 1.22
Hypothetical Result:
- Better emotional stability (less frequent portfolio monitoring)
- Portfolio volatility reduced 35%
- Returns remained similar (potentially higher due to less panic selling)
🎯 Key Takeaways
- ✓ Monitor Regularly: Review portfolio risks quarterly to prevent losses before they happen
- ✓ Diversify Smartly: Spread across sectors with low correlation, not just more stocks
- ✓ Follow the Rules: 25% sector limit, 5% single stock limit, balanced market cap
- ✓ Know Your Beta: Match portfolio volatility to your risk tolerance and life stage
- ✓ Use Technology: AI tools identify risks in seconds that take hours manually
Next Step: Get your free portfolio risk report from Trade Gheware →
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Frequently Asked Questions
What is sector concentration risk in a portfolio?
Sector concentration risk occurs when too much of your portfolio is invested in one sector. Portfolio theory and financial advisors commonly suggest that no single sector should exceed 25% of your portfolio. If you have 40% in IT stocks and the tech sector declines significantly, your entire portfolio can be affected. Diversification across 5-6 sectors helps mitigate this risk.
For example, during the 2024 IT sector correction, portfolios with 60% IT exposure experienced losses of 15-20%, while diversified portfolios typically lost only 5-7%. One approach is to spread investments across Banking, FMCG, Pharma, Auto, IT, and other sectors with low correlation.
How do I identify stock correlation risk in my holdings?
Stock correlation risk happens when multiple stocks in your portfolio move together, reducing diversification benefits. For example, TCS, Infosys, and Wipro all move similarly during IT sector trends. To identify this, calculate correlation coefficients between holdings (0.7+ is high correlation).
The manual method requires downloading price history and using Excel's CORREL function, which is time-consuming. Trade Gheware's AI automatically calculates all pairwise correlations and highlights high-correlation clusters. Aim to diversify across sectors with low correlation like IT + FMCG + Banking (correlation ~0.3).
What is the ideal market cap distribution for a balanced portfolio?
A balanced portfolio typically includes 60-70% large-cap stocks (stable returns), 20-25% mid-caps (growth potential), and 5-10% small-caps (high risk/reward). Over-concentration in any single market cap category increases risk.
For example, 80% small-cap exposure means extreme volatility during market corrections. During the September 2024 correction, NIFTY 50 fell 5.2% while NIFTY Smallcap 100 fell 15.3%. A balanced portfolio with proper market cap distribution would have lost only 7-8% compared to 13-15% for small-cap heavy portfolios.
How much should a single stock represent in my portfolio?
Financial advisors commonly recommend the 5% guideline: no single stock should exceed 5% of your total portfolio value. This helps prevent significant losses if one company underperforms. For example, if one stock is 20% of your portfolio and drops 50%, you lose 10% of total portfolio value. With 5% allocation, the same drop costs only 2.5%.
Even blue-chip stocks can correct 10-15% in challenging quarters. The 5% guideline aims to ensure no single company's performance has an outsized impact. Calculate: (Stock value / Total portfolio value) × 100. If result exceeds 5%, some investors consider rebalancing by reducing the position and reallocating to other holdings.
What is portfolio beta and why does it matter?
Beta measures how much your portfolio fluctuates relative to the market (NIFTY). Beta of 1.0 means your portfolio moves exactly with the market, >1.0 means more volatile (higher risk), <1.0 means less volatile (lower risk).
For example, if your portfolio has beta 1.5 and NIFTY falls 5%, your portfolio is expected to fall 7.5% (5% × 1.5). This works both ways - higher gains in up markets but higher losses in down markets. Financial advisors often suggest: conservative investors may target beta 0.7-0.9, moderate investors 0.9-1.1, aggressive investors 1.1-1.3. Beta above 1.5 indicates extreme volatility that can be challenging for many retail investors to manage emotionally.
How often should I rebalance my portfolio?
Financial advisors commonly recommend reviewing portfolios quarterly (every 3 months) or when any allocation drifts more than 3% from target. For example, if your target IT sector allocation is 25% and it reaches 28%, some investors consider rebalancing.
However, it's important to consider transaction costs and taxes when rebalancing. One approach: set calendar reminders for end of March, June, September, December. Review if any sector exceeds your target threshold, any stock exceeds your limit, or market cap distribution has changed significantly. Many investors rebalance only if drift exceeds predetermined thresholds. Trade Gheware automates this monitoring with Smart Alerts, notifying you when certain thresholds are reached.
Can I track portfolio risks manually without using AI tools?
Yes, you can track portfolio risks manually using Excel, but it's time-consuming and error-prone. For a 20-stock portfolio, you need to calculate: sector allocation (20 calculations), pairwise correlations (190 calculations), market cap classification (20 lookups), beta for each stock (20 calculations), and portfolio beta (weighted average).
This takes 3-4 hours per review. Additionally, you need to update market cap data, beta values, and prices regularly. Most retail investors skip this due to complexity, leading to unidentified risks. AI tools like Trade Gheware automate all calculations, updating in real-time as prices change. The time saved (3-4 hours to 30 seconds) and accuracy improvement justify using automated tools.
How does Trade Gheware help monitor portfolio risks?
Trade Gheware's AI continuously monitors your portfolio for all 5 risk types: sector concentration, stock correlation, market cap distribution, single stock concentration, and volatility. It sends real-time Smart Alerts when risks exceed thresholds, calculates risk scores, and suggests specific actions to rebalance your portfolio.
For example, if IT sector exceeds 25%, you receive an email/WhatsApp alert with exact stocks to sell and sectors to buy. The AI also tracks correlation matrix, flagging high-correlation clusters that reduce diversification. Portfolio beta is calculated daily, with suggestions to add low-beta stocks if volatility is too high. All analysis happens automatically after importing your Zerodha portfolio in 60 seconds via OAuth.
Disclaimer: This content is for educational purposes only and should not be considered investment advice. Trade Gheware is not a SEBI-registered Investment Advisor. The examples and strategies discussed are for informational purposes only. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Please consult a certified financial advisor before making any investment decisions. Past performance is not indicative of future returns. Users are solely responsible for their investment decisions.