From personalfn.com
Of course you possibly have never heard about this "portfolio of portfolios" theory.
So, what's the logic behind it?
To sum it in one sentence, you simply invest in a COLLECTION of mutual funds of differentiated themes.
No, you do NOT invest in a variety of stocks.
No, you do NOT invest in any one mutual fund.
No, you do NOT diversify with derivatives even.
You invest in mutual funds (MFs)...
...in a special way!
The 1st fund focusing strictly on large caps, providing you stability...
The 2nd fund focusing on the right mixture of large caps and bigger mid caps, providing you stability and growth probability...
The 3rd fund focusing strictly on high growth mid caps...
The 4th fund focusing on Buffett style of investing and invests predominantly in mid caps and small caps, trading at steep discount...
The 5th fund focusing on the emerging wealth building opportunities, providing you the best chances to exploit the market dissonances...
You invest your money in these 5 funds and just forget about it for next five years. And after five years, your portfolio could potentially return you about 100% (and it can go much higher!).
Of course there is a chance that this might not happen... But then to make this kind of returns, you need to take that extra bit of risk.
Agree?
You could reap BIGGER gains at a relatively lower risk, than in plain old stock or / bond investments.
Not to mention the fact that you do NOT have to put in any effort on your part.
No spending countless hours of time following stock movements on TV. .
No reading thousand of reports to know which ones are Buy, Hold or Sell..
No anxious checking of performance every now and then..
The simplicity & easiness of this theory is what makes it unique & useful.
But wait! There's one more thing that makes the whole method work.
That's what makes it special...
Because those Five funds are the five "stars" of the mutual fund industry.
Selected by our stringent research process, they have proven their financial worth over time.
They rank among the best in terms of consistency in performance, stability across economic cycle, extremely wide risk-reward ratios, top quality management team and very high portfolio quality.
And because of that these Five funds are incredibly hard to discover!
Yes, it rests on the selection of those Five funds and needless to say, that requires a lot of research and market study.
If you select the wrong funds, the whole theory crumbles and your investment goes down the drain.
If you select the right funds, you sit on gains much bigger than you can imagine.
Look at the graph below.
Assume if you invest Rs. 1,00,000 today in those 5 chosen funds, it becomes about Rs. 2,01,100 in 5 years at a growth rate of over 101.1% (that is, an annual return of just 15%).
Even if we are to be a little conservative & consider an annualized return of 12 per cent, which is very much possible given the present day circumstances, it still returns bout Rs. 1,76,000 - a 5 year return of 76.2%!
Not bad, right?
So you see, you can't make BIG returns without really doing anything very risky!
But then again, will you be able to pick out the right funds by yourself?
Will you be able to put in hours after hours into researching the fund industry and beat the money managers in their game?
Will you be able to work 9 pm to 5 pm daily and still have the energy to sit down with thousands of studies and journals every day at night?
Will you be able to put up with this daily for the next five years?
Tough it is.
Don't worry, We understand you.
We understand that it is not possible for an average investor to put this concept to work, just by himself.
Although you might want higher returns from your investments, you need to have time for yourself and your family too.
We believe that while growing money is important, sacrificing life is definitely not the way!
And thus to make your job a lot easier, we have brought to you what you want the most.
Because we have created a ready made portfolio for you...for the next next years.
...A solid mutual fund investment strategy, to build wealth safely and consistently over long term.
For more details
Email: info@personalfn.com, fns@personalfn.com.
www.personalfn.com
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