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Fund managers build portfolios, should you?

24K Views ·7 Posts
-Topic by @doctorpot1
Most investments are either high risk and high return or low risk and low return, but by adding the right assets, we can reduce the risk in the high risk high return stocks without reducing the returns, or increase the returns in the low risk low return stock without increasing the risk, or both.
You can use the paper portfolio feature to test and track this theory out by having one portfolio mimicking your strategy and another one where you apply the theory, and track their performance over time.
Do you construct an investment portfolio to maximise your return while minimizing risk? What is it like and how is it going? Share your idea of a diversified portfolio with us!
-Topic by @doctorpot1
Most investments are either high risk and high return or low risk and low return, but by adding the right assets, we can reduce the risk in the high risk high return stocks without reducing the returns, or increase the returns in the low risk low return stock without increasing the risk, or both.
You can use the paper portfolio feature to test and track this theory out by having one portfolio mimicking your strategy and another one where you apply the theory, and track their performance over time.
Do you construct an investment portfolio to maximise your return while minimizing risk? What is it like and how is it going? Share your idea of a diversified portfolio with us!
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Explained Simply: Modern Portfolio Theory, Optimising Risk and Reward of your portfolio

TLDR: Many Youtubers and even Warren Buffett had been asking us to just buy $SPDR S&P 500 ETF(SPY.US)$, but according to the Modern Portfolio Theory (MPT), this isn't the most optimal. By adding 13.63% of $Invesco QQQ Trust(QQQ.US)$ and 43.22% of $SPDR Gold ETF(GLD.US)$ to the mix, you could get the same returns of 9.63% but with risk lowered by about 3%. Or if you want the same level of risk but a higher rewa...
Explained Simply: Modern Portfolio Theory, Optimising Risk and Reward of your portfolio
Explained Simply: Modern Portfolio Theory, Optimising Risk and Reward of your portfolio
Explained Simply: Modern Portfolio Theory, Optimising Risk and Reward of your portfolio
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For investors with long-term horizons

“It is a terrible mistake for investors with long-term horizons — among them pension funds, college endowments, and savings-minded individuals — to measure their investment ‘risk’ by their portfolio’s ratio of bonds to stocks.”
— Warren Buffett
$Berkshire Hathaway 13F(BK2999.US)$$Berkshire Hathaway-A(BRK.A.US)$$Berkshire Hathaway-B(BRK.B.US)$$S&P 500 index(.SPX.US)$

Stock Portfolios are not just for the elite

Anyone can build a portfolio. It isnt us vs. them anymore. It is WE. We are all extremely lucky to have online brokers like MooMoo at our fingertips. Look at the community here. Everyone helping each other. Investors did not always have this. Yes, the average retail investor can and should make his own portfolio. 💯
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As ubiquitous as MPT might be, it still has some shortcomings in the real world. For starters, it often requires investors to rethink notions of risk. Sometimes it demands that the investor take on a perceived risky investment (futures, for example) in order to reduce overall risk. That can be a tough sell to an investor not familiar with the benefits of sophisticated portfolio management techniques.
Likewise, it is logical to borrow to hold a risk-free asset and increase your portfolio returns,...
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