Alternative funds to lower risk of equity funds.
After creating my efficient frontier tool in excel, I came to realize that alternative funds such as this and $M&G (Lux) Episode Macro Fund(LU1670713921.MF$ are actually great ways to balance the sharpe ratio/risk of equity funds such as $Fidelity Funds-Global Technology Fund(LU1823568750.MF$ or $AB International Health Care Portfolio(LU0289739699.MF$ .
these two are screenshots from my excel sheet that uses the solver functionality to automatically find the weight age that leads to the highest sharpe ratio.
A 70/30 split between the alternative and equity fund gives a 5-year sharpe ratio of ~1 assuming a 4% risk free rate, at an average return of 14.11% (annualized of 13.88%)
I don't believe I have bond or gold funds in here so I might fix that in the future.
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2 Yrs in Forex, rn starting on stocks.
Studying Banking & Finance in poly so I have an educational background too.
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