example investment portfolio
In this article I will quote a summary of the outcome of the theme of risk management to establish the capital. Give an example of the investment portfolio, which can help you realize your goals with a high probability.
Another important type of risk in the subject.
Before we turn to the example, I would like to touch on another type of risk, which is important to you to manage the risk of the company.
This risk arises in the case when securities or funds You have chosen for investments do not give the same yield, which was calculated, and even more so losing market as a whole.
This risk reflects the quality of the management (in respect of the funds - aggregate of the securities) or the risk that the investors do not want to invest in a Corporation and its securities do not grow on the market (in respect of certain shares and bonds)
In this case, as You can see, there is no risk of fraud, but there is a risk that by choosing such assets, You just don't reach your goal. I must say that on the exchange of such inefficient assets of approximately 80% (and here there is a rule Wilfredo Pareto).
This risk is mitigated by studying the yield of investment funds and choosing the best.
As well as allocating capital for different assets.
Comparing the yield of the Fund with the index of the world market, which gives an average of 9-11% per annum historically more than 60 years. If the Fund beats the market 5 years and more, then it can be regarded as an investment option.
An example of the investment portfolio.
2 the main risk in the investment of the foreign exchange risk and market risk.
Let us consider an example of a real investment portfolio, distributed with the consideration of risk management. Suppose the investor's age of 35 years. He wants to 30 % of the capital was invested in the United States.
Start-up capital investments 30000 ;. Financial protection is created.
So, we know the age, so the number of conservative asset should be the same age.
According to the rule of capital looking capital is greater than $ 10,000 choose 2 currency, additionally, it was the desire of the client to the United States had invested 30% of the capital.
Therefore we can offer the following scheme:
Conservative risk:
- Vanguard Total Bond Market ETF conservative Fund invests in bonds, the yield on average 6-7% per annum, currency investments - USD 6000 $ invest
- Bank dollar Deposit yield of 3% per annum - 4500 $.
Moderate risk:
- iShares S&P 500 Value Index Fund, which invests in the broad market index - the average and such funds on an interval of 50 and more years to provide annual yield at 10-11% per annum, but the last 3 years the Fund showed yield of 23% per annum. Invest in him 5000 $
- PowerShares Dynamic Large Cap Growth Fund invests in the shares of large companies. For 3 years showed yield an average of 24% per annum. Invest in him 5500 $.
Aggressive risk
- Share investment Fund "Peter Stolypin" - Fund invests in shares of large Russian companies. For 3 years showed yield an average of 24% per annum. Invest in him 6000$.
- Share investment Fund "Dobrynia Nikitich" - the Russian Fund. Invest in him is $3000.
What is the picture we've made it in the end?
This is the strategy of market risk management.
35% of the capital invested conservatively in dollars.
35% of the capital investing with a moderate risk also in dollars.
30% invest aggressively in Russia.
And this foreign currency risk management:
70% of the capital is invested in dollars
30% of the capital in rubles.
Use this example of the investment portfolio to create your own strategy. All you get!
