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Description:
The investment goal of this strategy is to secure stable total income in the medium and long-term. The portfolio is designed by choosing fundamentally attractive shares, with stable cash flows and a sustainable business model.
To control the risks we use the following management instruments: limitation of the maximum fraction of an asset, and both a large diversification of the portfolio at the securities level (the minimum allowable number of securities in the portfolio is more than 20 shares) and diversification in different sectors of the economy. Thus, in other words, several dozen of the best, stable, and promising stocks are selected from the whole S&P500 index reflecting the general dynamics of the US stock market. The best stocks push the index up, acting as a growth driver; subsequently, the strategy secures a yield better than the index.
The portfolio is hedged by selling futures for the index to decrease strategy risk in case of a general stock market correction. This investment approach allows to earn on market growth and not to lose income during a correction.
Portfolio structure:
90% of US stocks
10% of futures for US indices
Advised investment amount: min. 2 million rubles
Advised investment term: min. 1 year
Risk/yield ratio:
Maximum portfolio drawdown - 10%
Expected yield - 15% (US dollars)
The investment goal of this strategy is to secure stable total income in the medium and long-term. The portfolio is designed by choosing fundamentally attractive shares, with stable cash flows and a sustainable business model.
To control the risks we use the following management instruments: limitation of the maximum fraction of an asset, and both a large diversification of the portfolio at the securities level (the minimum allowable number of securities in the portfolio is more than 20 shares) and diversification in different sectors of the economy. Thus, in other words, several dozen of the best, stable, and promising stocks are selected from the whole S&P500 index reflecting the general dynamics of the US stock market. The best stocks push the index up, acting as a growth driver; subsequently, the strategy secures a yield better than the index.
The portfolio is hedged by selling futures for the index to decrease strategy risk in case of a general stock market correction. This investment approach allows to earn on market growth and not to lose income during a correction.
Portfolio structure:
90% of US stocks
10% of futures for US indices
Advised investment amount: min. 2 million rubles
Advised investment term: min. 1 year
Risk/yield ratio:
Maximum portfolio drawdown - 10%
Expected yield - 15% (US dollars)