Many Australian portfolios are too heavily concentrated in the top 20 stocks and in the true sense are not properly diversified portfolios

Many Australian portfolios are too heavily concentrated in the top 20 stocks and in the true sense are not properly diversified portfolios. Anton Tagliaferro, Investment Director at Investors Mutual, says there is sufficient quality outside the top 20 to build a strong portfolio and that just investing in the top 20 stocks does not give you enough diversity across sectors. Whilst companies like Caltex, Ansell and Orica might not be as large in market cap as the top 20 they are still leaders in their industries. They are not bank or resource shares but they are not going to go away. either. In terms of shocks - they are huge companies and often number one in their industries...They are as good quality as the top 20 they are just not as large. Access the extended interview on the following link: