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We write a lot on our blog about new investment instruments that allow you to get acquainted with the exchange and control risks. One such tool that has emerged in recent years is model portfolios. In today's article, we will talk about how they can be used to save and increase funds even in times of crisis after global quarantine.
What it is
At its core, a model portfolio is an ordinary set of several assets selected according to a certain criterion. For example, only stocks of companies in one sector of the economy, bonds, etc. Such portfolios are composed of analysts of brokerage companies, while the optimal ratio of risks and potential profitability is selected, there is a constant rebalancing - assets are added and excluded from the portfolio based on the current market situation.
Such a tool is great for novice investors or those who are not ready to devote a lot of time to portfolio compilation and control. You can read about how to do it yourself in our other article .
How it works in practice
The best way to understand how the tool works is through practical examples. Below we look at a few real model portfolios, but for now let's talk about some common parameters:
- Composition - each portfolio consists of a specific set of assets.
- Product currency - the model portfolio can consist of both ruble and dollar securities.
- Minimum amount - there is always a minimum investment threshold. For ruble model portfolios, it is 50 thousand rubles.
- Term - The investment strategy behind a model portfolio usually requires a minimum lead time (for example, six months).
- Risk profile - there are portfolios that are more or less aggressive, you need to choose here, including based on your risk tolerance (we wrote about this in the article on the psychological profiles of exchange investors ).
- Qualifications - what kind of market experience you need to have to start using such a portfolio.
With the theory finished, now consider three real model portfolios.
Model Portal " Dividend "
Amid a protracted crisis, caused by a variety of factors, from falling oil prices to the coronavirus pandemic, stocks of companies paying dividends are becoming more attractive for investors. This allows you to earn or compensate for losses even in case of minimal growth of the investment portfolio.
ITICapital clients have access to a model portfolio of dividend stocks of Russian companies. Here are its parameters:
- The portfolio includes shares of companies in the oil and gas, mining, financial, telecommunications, and power sectors.
- Product currency is the ruble.
- The minimum amount is 50 thousand rubles.
- Recommended period is 6-12 months.
- The risk profile is aggressive.
- Qualification - not required.
The level of risk here is low due to the fact that the portfolio mainly contains shares of companies in the so-called "defensive" sectors, in addition, paying dividends.
Of course, do not forget about risk factors, among which:
- Deteriorating external environment for export-oriented industries.
- Stagnation of the Russian economy and a reduction in dividend payments, priority for operational support of the business.
Portfolio “ Bonded ”
This package includes bonds of reliable Russian issuers - market leaders, strategic companies, including those with state participation. It is intended for investors who follow a conservative investment strategy.
- Portfolio composition - bonds of Russian issuers.
- Product currency is the ruble.
- The minimum amount is 50 thousand rubles.
- Recommended period is 6-12 months.
- The risk profile is moderately conservative and rational.
- Qualification - not required.
Among the risk factors:
- Unfavorable macroeconomic environment.
- Inflation risks, tightening monetary conditions.
- Increased sanctions pressure.
Portfolio " American Shares "
This portfolio contains a balanced combination of stocks of US issuers with a relatively low level of volatility (in beta ratio). The portfolio is filled with stocks of issuers with positive dynamics of financial indicators for the last reporting period. These companies expect business growth and / or increased profitability this year. All of these are important drivers of investment portfolio growth.
Analysts included companies in the following business sectors in the paper portfolio: oil and gas, industrial, IT, financial, healthcare.
- Portfolio composition - shares of American companies.
- The product currency is the dollar.
- The minimum amount is $ 1.5 thousand.
- Recommended period is 6-12 months.
- The risk profile is moderately aggressive.
- Qualification - not required.
Risk factors:
- Slowdown in US economic growth
You can buy shares of American companies from Russia individually, not within the portfolio. Now you do not need to open a separate brokerage account with foreign brokers for this. With the help of the foreign securities market of the St. Petersburg Stock Exchange, investors can buy 500 liquid shares of leading companies in all sectors of the world economy, including all shares of the S&P 500 index.
To carry out transactions with such shares, you need a brokerage account - you can open it online .
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