How To Make One Million Dollars From Hundred Thousand? Part 1

Today I want to present the real portfolio of investments developed by me for one of clients it is a portfolio of investments for distribution of the sum of $100,000.

So, here the portfolio scheme:

Conservative mutual fund of ³1 – 4 % – 19,000$
Conservative mutual fund of ³2 – 4 % – 19,600€
Moderate mutual fund of ³3 – 10 % – 17,000$
Moderate mutual fund of ³4 – 10 % – 17,000€
Aggressive mutual fund of ³5 – 15 % – 10,000$

The sum of numbers of the column is less than 100,000 since investments, as dollars, and in euro is used. Names of concrete funds I, from clear reasons, don’t result. First, from reasons of nondisclosure of results of the work made for the concrete client. Secondly, once again I will notice that these funds have been picked up under the concrete client, as that is healthy for one person, for another is a death. I.e. for other person can be better some other structure of funds.

Such portfolio is conservative enough: 48 % are invested in conservative mutual funds. A share of moderate instruments also a bycicle: 42 %. Aggressive investments make only 10 % of a portfolio. The small note: to receive these digits of distribution on various risk levels, it is necessary to transfer all assets in one currency.

Mid-annual profitableness of such portfolio will make 7,62 % annual.

What interesting it is possible to note in this portfolio?

For example, that in 26 years this sum will turn to one million dollars. And for this purpose it is enough of all to invest once hundred thousand dollars. Only one action – and through any time at your arms will be already solid capital. And thus it is not required to watch a condition of the markets, to study instruments of investments, to search for more favorable variants. It is necessary to wait only. And an award is the good capital which, for example, can be left in the inheritance to children. Or to live on this money in your old years. However, I do not think that the problem how to spend one million dollars will seem to you difficult.

And now let us mention a little bit some not that much advantageous sides of this investment portfolio. How you think, if you invest 100,000$ in foreign mutual funds with the profitableness specified in the list above, whether you in 26 years receive one million? No. The result will be less than 900,000$.

Why? In what is a dirty trick? Perhaps, business is in the various commissions for management which takes these funds? No, the reason is not in it. First, the commissions aren’t so great, that so it is essential to affect result. Secondly, on the business, their influence is already considered. I.e. those digits of profitableness which you see in the list is “a pure” profitableness, taking into account all commissions.

So what is this you will find out in the final part of this article… So keep reading…

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