The Exposure Calculator helps you understand where your money is invested and whether your portfolio is balanced for your goals and risk tolerance.
It’s designed for UK investors who want to visualise how their savings or investments are distributed across asset types such as cash, bonds, shares, and alternative assets. By reviewing your current mix, you can see whether you’re over- or under-exposed to certain risks compared with common portfolio models.
Why Portfolio Exposure Matters
When you invest, it’s easy to become unintentionally concentrated in one area. Too much cash can mean your savings lose value to inflation, while too much in high-risk assets can make your portfolio volatile.
Diversification spreads your risk. The right balance depends on your goals, time horizon, and how much risk you’re comfortable taking. The Exposure Calculator helps you visualise that balance clearly.
How to Use the Exposure Calculator
1. Enter your holdings
Add the amount of money you have in each category: cash, bonds, funds, individual shares, small caps, or crypto.
2. Review your exposure chart
The tool will show the percentage of your total portfolio in each asset class.
3. Compare to a model portfolio
You can compare your allocation to typical Conservative, Balanced, and Aggressive examples shown below.
4. Adjust your targets
Use the calculator to test how shifting allocations (for example, adding bonds or reducing crypto) could change your overall risk level.
Asset Categories Explained
1. Cash & Cash Equivalents (Low Risk)
Includes cash savings, Premium Bonds, money market funds, and short-term government gilts.
Risk Level: Very low – secure but vulnerable to inflation over time.
2. Bonds & Fixed Income (Low–Medium Risk)
Includes UK government gilts, investment-grade corporate bonds, or bond index funds.
Risk Level: Generally stable, though prices move with interest rates.
3. Diversified Stock Index Funds (Medium Risk)
Broad global or regional index trackers such as FTSE Global All Cap, S&P 500, or FTSE 100 ETFs.
Risk Level: Moderate – good long-term growth potential with diversification benefits.
4. Large-Cap Individual Stocks (Medium–High Risk)
Shares in major established companies such as Apple, Unilever, or AstraZeneca.
Risk Level: Concentrated exposure but relatively stable compared with small companies.
5. Small-Cap / Growth Stocks (High Risk)
Investments in smaller or early-stage firms, often AIM-listed or sector-specific ETFs.
Risk Level: High volatility and higher potential reward or loss.
6. Alternative Assets & Crypto (Very High Risk)
Includes Bitcoin, Ethereum, altcoins, NFTs, and sometimes commodities like gold or oil.
Risk Level: Highly speculative and subject to large short-term swings.
Example Risk Weightings
| Category | Conservative Portfolio | Balanced Portfolio | Aggressive Portfolio |
|---|---|---|---|
| Cash & Cash Equivalents | 20–40% | 10–20% | 5–10% |
| Bonds & Fixed Income | 20–40% | 20–30% | 10–20% |
| Diversified Stock Index Funds | 20–40% | 30–40% | 40–50% |
| Large-Cap Individual Stocks | 0–10% | 5–15% | 10–20% |
| Small-Cap / Growth Stocks | 0% | 5–10% | 10–15% |
| Alternatives & Crypto | 0% | 0–5% | 5–10% |
Example Portfolio Breakdown
Suppose an investor has:
- £1,000 in cash
- £1,000 in index funds
- £1,000 in large-cap shares (e.g., Google or Unilever)
- £500 in a small-cap tech startup
- £500 in crypto
This totals £4,000. Their exposure would be:
- 25% cash
- 25% diversified index funds
- 25% large-cap shares
- 12.5% small-cap growth
- 12.5% crypto
Compared with a balanced model, they are underweight in bonds and overweight in higher-risk assets. Adjusting by adding some fixed income could stabilise the portfolio.
How to Interpret the Results
- If you hold a lot of cash: your money is safe but may lose value in real terms over time.
- If you’re heavily in equities: expect bigger swings in value, but greater growth potential.
- If you own crypto or alternatives: consider keeping exposure small unless you can tolerate large losses.
The goal isn’t to copy a model exactly but to understand where your risks lie and decide whether they match your comfort level.
Next Steps for UK Investors
Use this calculator alongside other free tools:
- Investment Calculator – project long-term growth.
- Inflation Calculator – see real returns after inflation.
- Retirement Calculator – plan for the future.
To learn more about building a balanced portfolio, see:
Disclaimer
The Exposure Calculator is an educational tool to help you visualise diversification and risk. It does not provide personalised financial advice and may not reflect your own goals, time horizon, or tolerance for risk. Always do your own research or consult a regulated financial adviser before making investment decisions.