Ask the expert: Is too much of my wealth tied up in AI?
Company shares can be a valuable perk, but could holding too much leave you exposed? Fidelity International’s Marianna Hunt is back to investigate. Q: I work for a large US-listed tech company in London. Part of my pay comes in the form of company shares that vest over time. After working there for a while, [...]
Fidelity International’s Marianna Hunt discusses the potential risks of holding too much wealth in a single company, specifically a tech company in the AI sector. The expert explains that more than half of the reporter's investment portfolio is exposed to just one business, which is also their employer. This concentration of wealth could leave the investor vulnerable to a tech crash or disappointing results from their employer.
It is advised to diversify the portfolio to reduce the impact of any potential downturn in a single company or sector. The expert also highlights the tax implications of selling vested company shares and suggests reinvesting any proceeds within an ISA to protect future gains from capital gains tax.
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