Investing · General financial education

Home bias

Home bias means investors hold a disproportionate share of assets from their own country or region, often more than world market weight would suggest.

In more detail

Reasons can include familiarity, currency, tax or habit. Concentration at home can bunch risks that would be more spread globally. Finmon recommends no country weight.

Background

Holding a lot at home can be a habit and a concentration. This sits next to other habits, asset classes, risk, and theme bets. Finmon does not pick a product.

An example

The home market is a small slice of world equities, but the portfolio is 80 percent domestic. That is home bias as a pattern, not a Finmon quota.

A common misconception

Holding only home assets is always the safest diversification.

Home overweight can bunch risks. Diversification and familiarity are different questions.

Source: Investor.gov · Diversification. Last reviewed: 2026-11-09. Editorially reviewed on 2026-11-09. Next review 2027-11-09. Version 0.2.0. Finmon explains. It does not advise. Not investment, tax or legal advice.