The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.
The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.
Balanced Investors
This portfolio suits someone who likes the idea of adventure but prefers to read about it from the safety of their home. It suggests a personality that's cautious but curious, aiming for growth without the stomach for too much turbulence. The heavy reliance on familiar, large-cap stocks hints at a preference for stability over high-risk, high-reward ventures. This investor likely has a medium-term horizon, balancing the desire for growth with a pragmatic approach to risk.
Your portfolio is like that friend who claims to be adventurous but always orders chicken nuggets. With half your money in SPDR S&P 500 ETF Trust, a quarter in Berkshire Hathaway, and the rest in a global ETF that avoids the U.S., it screams "I'm diversified!" but whispers "but not too much." It's like betting on both teams to win; you might not lose big, but you're missing out on the thrill of the game.
With a CAGR of 12.75%, your portfolio is the equivalent of a B student who could be an A if they just showed up to more classes. Sure, it's not bad, but when you consider the S&P 500 has been handing out A's like candy in a bull market, it begs the question: could we try a little harder? The -31.72% max drawdown is like that one bad semester you can't let define you, but it's a reminder that past performance is like relying on a rearview mirror to drive forward.
Your Monte Carlo simulation is a fancy way of saying, "Let's gamble on the future based on past bets." With numbers suggesting a range from "could buy a yacht" to "might need a second job," it's essential to remember that these simulations are like weather forecasts for your money. They're educated guesses, not promises. Betting on a 344.3% median increase sounds great until you remember it's about as reliable as a horoscope.
Your asset class distribution is like wearing a full suit with flip-flops. With 99% in stocks and a lonely 1% in cash, it's clear you're all in on equities. This could lead to a wild ride in market downturns, akin to showing up to a black-tie event in beachwear. A little more balance wouldn't hurt, unless you enjoy financial roller coasters.
Your sector allocation is like a diet that's heavy on meat and potatoes but light on vegetables. Financial Services and Technology are your steak and fries, making up nearly 60% of your portfolio. While delicious, this imbalance could lead to heartburn during tech sell-offs or financial crises. Diversifying your sectors is like adding some greens to your plate — it might not be as exciting, but it's healthier in the long run.
With 77% in North America, your portfolio is like saying you love to travel but only ever visiting Canada. It's great that you're stepping out of the U.S. with the Xtrackers ETF, but you're still playing it safe. Emerging markets are like the road less traveled: potentially bumpy, but with the promise of unique rewards. A little more global curiosity could spice up your returns.
Your love affair with mega and big caps is like only watching blockbuster movies and ignoring indie films. Sure, the 62% in mega-caps brings stability, but the 1% in small caps is a missed opportunity for growth. It's like always choosing safety over adventure; you might miss out on the next big thing.
Your dividend yield strategy is like being content with finding loose change under the sofa cushions. With an overall yield of 1.32%, it's clear you're not living off dividends, but they're a nice bonus. However, relying too heavily on them in sectors prone to cuts can turn your comfy couch into a financial futon. Diversifying sources of income could provide a steadier cash flow.
Congratulations on not letting fees eat your lunch. With a total TER of 0.15%, you've managed to keep costs lower than a flea market bargain. It's one of the few areas where being frugal pays off in the investment world. Keep pinching those pennies, but maybe splurge a little on diversification.
This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.
Your portfolio's approach to risk vs. return is like insisting on a balanced diet but only eating from two food groups. While you're not living on the edge, you're also not optimizing your meal plan. Exploring a wider range of asset classes and sectors could provide a more nutritious financial health without needing to binge on risk.
Select a broker that fits your needs and watch for low fees to maximize your returns.
The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.
Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.
Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.
Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.
By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.