How do you build your own fund?
Assembling your own fund from your broker account: setting weights, diversifying and rebalancing — step by step, with no manager in between.
TL;DR: Building your own fund means you decide which assets go in, what weight each one gets and when you rebalance — straight from your own broker account, with no fund manager in between. With the right tool it comes down to picking assets, setting weights and rebalancing whenever you choose.
You buy a ready-made fund and then leave it alone — but you pay for the management every year and have no say in what's inside. Building your own fund flips that around: you keep control. Here's what it involves.
What does "building your own fund" actually mean?
At its core, a fund is nothing more than a basket of assets with agreed weights. An index-fund provider does that for you and charges for it. Build it yourself and you assemble that basket from the assets already in your own broker account, deciding the split yourself — say 60% in one position and 40% in another. You're not buying a provider's product; you're managing your own composition.
What are the steps to build a fund?
- Decide your strategy. What is this fund for, and which assets fit that goal? Spreading across several positions reduces dependence on any single one.
- Set the target weights. Give each position a target percentage. Together they add up to 100%. That target weight is your reference point: rebalancing brings your positions back to those target percentages whenever you choose.
- Execute through your broker. You place the orders yourself via market orders on your broker account. The assets stay with your broker; you only manage the composition.
- Keep it in balance (rebalancing). Price moves shift the weights over time. Rebalancing brings them back to your target split. This is a tool that helps you prepare and carry out the rebalance — not automated trading: you confirm and place the order.
What is rebalancing and how often do you do it?
Rebalancing is returning your weights to the target split after prices have shifted them. Say you wanted 60/40 and the first position grows to 70% — you sell a slice and top up the other. How often you do it is a personal choice: some review quarterly, others only when the drift gets large. David prepares the rebalance and lets you confirm the execution; the app never trades on its own.
Why do it yourself instead of outsourcing?
Three reasons that come up often: control (you decide the composition), cost (no ongoing management fee) and insight (you understand exactly what you own and why). The trade-off is that you carry the work and the decisions yourself. This article doesn't tell you what to choose — it shows how building your own works, so you can weigh it up yourself.
Frequently asked questions
How do I assemble my own fund?
You pick the assets from your broker account, give each position a weight and place the orders yourself via market orders. In David you do this in the Builder: select assets, set weights, execute.
How many funds can I create?
Unlimited. You can run several funds side by side, each with its own strategy and split.
What does rebalancing mean and how often should you do it?
Rebalancing returns your weights to the target split after prices have shifted them. How often is a personal choice; many people review quarterly or only when the drift is large.
Does David trade automatically for me?
No. David prepares the rebalance, but you confirm and execute the order yourself. There is no automated trading.
Build your first fund
David is an iOS app that lets you assemble your own fund from your broker account — unlimited funds, market orders, and all your data stays on your device. Start with the Builder →
David Owl (C capital bv, Dutch CoC 82436665) is software, not a wealth manager, and offers no investment advice. You are responsible for all investment decisions. Rebalancing in David is a tool you confirm and execute yourself; the app does not trade automatically.