Questions tagged [portfolio]

Questions relating to the collection of an individual's investments, looked at at a whole.

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2answers
1k views

How do you calculate the annualised return of your portfolio from the annualised returns of each of your funds?

I've invested in a number of mutual funds, and I've calculated the annualised return of each of them, using a spreadsheet (and the xirr function). I want to calculate the annualised return of the ...
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21k views

What is the difference between a fund manager and a portfolio manager?

What is the difference between: a fund manager, a portfolio manager and a trader?
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3answers
189 views

Are buying puts valid portfolio protection?

Any article you read on buying puts for downside protection always walks through the optimal outcome. It goes like this: You buy cheap puts, the market declines before your puts expire and you have a ...
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1answer
249 views

How often should one's retirement portfolio be adjusted (rebalanced), and how?

I'm opening my Roth IRA Account. My question is: How often should I adjust my portfolio? I know this depends on a variety of factors: I'm 23, plan to retire when I'm in my 60s (or at least withdraw ...
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1answer
183 views

Is there any data that shows how diversifying results in better returns than just sticking to an all-stock portfolio?

Assuming that the money invested is not to be touched for decades (so the risk of temporary market downturns is irrelevant in this case), many suggest that you should still diversify your portfolio ...
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1answer
305 views

Investment Club - Legal Steps

This is an extension/more detailed question I asked a while ago: Legal documents required for managing an investment portfolio among friends? The main question here is do I need to create an LLC to ...
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2answers
8k views

How is my 'Personal Investment Performance' on my 401(k) calculated?

My 401(k) shows the following: my starting value at the beginning of the year personal contributions employer contributions investment gains/losses Closing value from Yesterday Total Change Personal ...
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1answer
433 views

Could someone please provide an example of a portfolio similiar to the GFP or Couch potato, but for Australia?

So I've been reading about MPT and came across the GFP and couch potato sites posted in this link, in any-experience-with-the-gone-fishin-portfolio and wanted to know of anything similiar to the GFP ...
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1answer
323 views

How can I track the value of options live in my portfolio

With stocks I can enter price and amount into most applications and they allow me track the total Profit / Loss live. Are there any ways to do this with option positions? I was considering entering ...
3
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1answer
616 views

$1.44 million in holdings: Help my non-retired, 80-year-old dad invest it [closed]

tl;dr   My 70'ish mother and 80-year-old, non-retired father have combined holdings of ~$1.44 million, haphazardly scattered over a number of instruments; help me help them design an ...
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1answer
925 views

Rebalancing a portfolio

Quick question on rebalancing a portfolio. Let's say that 10% of my portfolio is in something really speculative such as bitcoin (speculative for me at least)...now I've said to myself that I'm only ...
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4answers
539 views

What should I invest with a spare $5000

Some background info: 23 years old, still schooling in university I have emergency funds, health insurance, 0 debt (Except yearly insurance payments) I am not looking to start into index ETFs as I ...
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243 views

Portfolio diversification for the long run

I have often heard the phrase "nobody beats the index" which made me wonder why so many people, that invest for the long term (say 20-25 years), diversify their positions so much? Why wouldn't ...
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1answer
115 views

Overall portfolio vs. your investment product's portfolio?

I'm just starting to invest and going with a managed account. I'm sure any investment firm would love to manage all my available money, however I'm not ready to put all my eggs in one basket (if ever)...
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2answers
187 views

Low Fee Income Generating Investments for a Trust

I am looking for a low-cost / low fee investment strategy for a modest ($75K) trust. I am only allowed to distribute the income of the trust to the beneficiary and cannot dip into the trust's corpus (...
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293 views

What risk of a diversified portfolio can be specifically offset by options?

I have been reading articles on portfolios and options. It seems options are used to hedge portfolios for multiple risk factors. I would like to know why options, and why not futures? What is the ...
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4answers
2k views

Online tools for monitoring my portfolio gains/losses in real time? [closed]

My request is a simple one... I have about 5 stocks that I own currently and have owned for years now. I want to start trading more actively now but want to make informed decisions on how my stocks ...
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2answers
149 views

Tracking health of a stock portfolio

Most brokerage accounts highlight the current return on your investment (average cost-basis of your portfolio is X, now market value is Y, so your return is Z%). But I don't find this single metric ...
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3answers
284 views

Fundamentals of creating a diversified portfolio based on numbers?

There are a number of articles and posts across the internet describing how to diversify your portfolio. But, each claim typically focuses on how to allocate your portfolio rather than describing ...
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3answers
2k views

How can I determine if my portfolio's rate of return has been “good”, or not?

I've invested in stocks as a hobby for the last ten years, so I'm no expert on this. But if you have contributed about $7,000 over the past ten years (like putting in $200 here and there) and your ...
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1answer
634 views

Using the Rule of 72 to compute residual income?

Often I check an investment strategy's performance by summing the year-to-date realized gains/losses. I take the sum of all closing(or market for unrealized) values CT, subtract the sum of all cost ...
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1answer
3k views

How to construct a stock portfolio using the Kelly criterion?

Descriptions of the Kelly criterion are usually illustrated by examples about making optimal bets. But what would the guidelines be regarding using it to put together an optimal stock portfolio? For ...
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1answer
3k views

Is portfolio beta truly just the weighted average of stock betas? If so, is there a way to distinguish betas based on composition?

For instance, assume you have three portfolios. Portfolio A is 100% invested in a market index with β=1. Portfolio B is a 50/50 mix of two stocks (Stock A β=1.5 and Stock B β=0.5). The weighted ...
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1answer
116 views

What indicators should I look for when investing in various stocks or funds?

Say I want to manage my own portfolio of stocks or funds, which key indicators should I primarily look for? To me there are few, although I'm not sure they are the most relevant: Sharpe ratio ...
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1answer
131 views

What's the role of commodities in a IRA portfolio?

People keep talking about percentage of stocks vs bonds to manage risk when building a personal investment portfolio. What's the role that commodities have in managing risk when building an IRA ...
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1answer
242 views

Are interest bearing checking accounts (rewards checking) covered by FDIC?

I see a lot of banks offering rewards checking accounts (maintain the account in an active status by doing x transactions/month,direct deposit, paper less statements etc, in return you yearn high apy. ...
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2answers
305 views

Compare my variable portfolio performance with S&P 500?

The question may appear simple at first but I really cannot come up with a quick and easy way to compare my performance as a trader Vs S&P500. For the sake of simplicity, I am analyzing my ...
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1answer
225 views

How can I calculate the annualised growth rate for an irregular investment?

I have a portfolio, which I invest in monthly. Depending on my circumstances, the monthly amount changes from time to time (perhaps every two years or so). I want to calculate the annualised growth ...
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1answer
109 views

Why values within a “Style Box” are discrete and not continuous?

Style Boxes map financial products on a two axes diagram, but instead of using continuous values for the axes, they use discrete values (small/medium/large, value/blend/growth, etc.). (source) How ...
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2answers
184 views

Portfolio theory and the business cycle: Determining ideal allocation to stocks?

Historically, there is a level of mean reversion with stock prices. So the expected return of a market portfolio changes with boom and bust periods. Is there a generalization of portfolio theory that ...
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5answers
135 views

Are Gold and similar assets a good way to diversify your portfolio to protect value?

If the goal is to have a diversified portfolio (more towards the safe, conservative, long-term side), should you include assets that hold value, but are not productive per se, like gold, silver, coins,...
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1answer
78 views

personal portfolio return calculation problem

I want to measure and evaluate the performance of my personal portfolio. However, I am concerned about confusion and miscalculation. Because when I calculate the time-weighted portfolio return rate in ...
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2answers
1k views

What's the formula for profits and losses when I delta hedge?

Say I buy a call option today, and I short the underlying stock with the delta. What is the value of this portfolio today? Then, one period later, say there's a change in the stock price. That also ...
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1answer
1k views

Are there any online tools to examine asset allocation and portfolio diversification?

Are there any good online tools to examine asset allocation, portfolio diversification? I would be interested in being able to plug in numbers, run scenarios etc. I could build a worksheet in Excel ...
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4answers
393 views

Why should I worry about the variance of the return?

I have this doubt (I hope that this is not a completely silly question). If my growth rate depends on the long period average return, why should I worry about the variance of the return? i.e. over the ...
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5answers
1k views

What's the most conservative split of financial assets for my portfolio in today's market?

Mid 30's, looking for what split I should have between Australian shares, International shares, property, cash, interest, bonds, options, etc. or maybe none of the above. What is considered to be a "...
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2answers
286 views

How aggressive should my personal portfolio be?

I am 27 and have a retirement portfolio with three funds that are all rather long-term investments: MSCI World (ETF) Magna New Frontiers Ökoworld Ökovision Classic C This portfolio is managed by an ...
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2answers
1k views

Investing in commodities, pros and cons?

I'm wondering about investment in commodities (through derivatives such as futures for example). What would they offer new in a multi-asset portfolio? Probably some diversification, but what else? (...
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3answers
1k views

When the market crashes, should I sell bonds and buy equities for the inevitable recovery? [closed]

I'm told that for my age, I should have about 1/3 of my portfolio in bonds and 2/3 in equities. Suppose I implement that with this portfolio: 100k of SPY 100k of IWM 100k of TLT Now suppose that ...
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3answers
4k views

Computing portfolio return with net inflow/outflow

in his book "The four pillars of investing", the author describes this simple method to compute the rate of return for a portfolio that has a net inflow of cash: Without in- or outflow, the rate of ...
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4answers
154 views

Is adjusting my portfolio's distribution according to bad signals from news risky?

I'm distributing my investment to stock(mostly MSCI ACWI) and bond funds, Basically 60:40. I also rebalance monthly as I got paid monthly. I recently worried about the global and local(South Korea) ...
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3answers
185 views

How does investment on goods impact the risk of portfolio?

I really need good references to see what the impact of SRI (socially responsible investment) is on the portfolio risk. I have searched through a lot of books but nothing I found. Can you please give ...
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2answers
731 views

TRUE OR FALSE: As the number of assets in a portfolio increases,the variance tends towards the average s.d of the assets

TRUE OR FALSE: As the number of assets in a portfolio increases, the variance of the portfolio returns will tend towards the average standard deviation of the assets of the portfolio. And why? I said ...
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2answers
38 views

Standard metric describing % gain/loss normalized by the time of owning the security + Interactive Brokers implementation

If you sell the stock with 5% gain over 1 day it's not the same as if you sell it with 5% gain over a year. Is there a standard metric / coefficient that normalizes that and how to do it in ...
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1answer
107 views

Auto balancing portfolio through new purchases

I'd like to have an investment portfolio with a few items, each having a target proportion (e.g. I want to have stocks of Apple and the total value of those should be 25% of my portfolio's total worth)...
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2answers
14k views

How do I calculate portfolio standard deviation in Excel?

How do I calculate a portfolio standard deviation given a return? If I have 3 portfolios with similar size of $300 million. Portfolio A : Expected Return % / Dollar Amount : 3.78% / $11.34m, ...
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2answers
672 views

What is the principle of forming an arbitrage strategy?

I have heard that the arbitrage strategy follows the principle of "short in expensive, and long in cheap" (Or, maybe, it was "short in cheap, and long in expensive."). I wonder how to explain this ...
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1answer
722 views

How would I have a portfolio with a security of a weight greater than 1?

I recently started learning about finance and we talked about Markowitz Portfolio Theory. I understand that a portfolio consists of different assets, each of them with a certain weight. So, for ...
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1answer
132 views

Portfolio insurance

I am thinking about betting the house, rather than the car, and will essentially pour all my entire net worth into the market. I am trying to find a way to protect myself against a major crash. I am ...
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1answer
193 views

What exactly is the profit and loss of a portfolio?

I've searched all over the internet, but have not found the answer to this question. When we 'delta-hedge', we make the value of a portfolio 0. Now, we know that an approximation of the change in a ...