When you join the Pod, you’re investing in a diversified portfolio – not just your own stocks. Your contribution is pooled with those of other investors, giving you a stake in a broad basket of assets. This means the risk from any single stock is greatly reduced. If another investor contributes a stock that performs poorly, it only makes up a small part of the overall portfolio, so the impact on your returns is cushioned by all the other holdings.
Craft manages the fund to behave more like a broad market index over time. We rebalance the portfolio using an index-tracking ETF, which helps mirror the index’s performance even if certain stocks aren’t contributed directly. For example, if someone contributes cash, that cash is used to purchase an ETF that matches the index, helping to rebalance the mix and fill any gaps in exposure. This process keeps the fund diversified and aligned with its benchmark while remaining tax-efficient.
The end result is a more stable, lower-volatility experience for investors. No single “bad” stock can sink the whole fund – the stronger performers help offset the weaker ones. You’ll see this reflected in your results too: the fund’s performance is reported as a single Net Asset Value (NAV) representing the entire diversified portfolio. (For more details on how your returns are tracked, see our guide on fund performance reporting)