Standard Portfolio and Returns

Following is the typical portfolio available to the investor from banks or investment companies.

Depending on the horizon of investment & risk appetite, the investor can choose one of these portfolios.

 

 

Portfolio Aggressive Moderate Conservative
Canadian stocks 25% 20% 10%
US Large cap stocks 25% 20% 10%
World ex-US stocks 20% 20%  
US Small stocks 10%    
Bonds 15% 30% 60%
Cash 5% 10% 20%

 

 

Portfolio Years Compound Annual Return Highest Return Lowest Return Negative Periods
Aggressive 1 10.7% 57.7% -29.7% 19.5%
  5   29.6% -2.0% 1.3%
  10   21.1% 1.0% 0.0%
Moderate 1 9.7% 50.8% -24.2% 17.3%
  5   27.8% 0.4% 0.0%
  10   18.6% 2.3% 0.0%
Conservative 1 8.1% 48.6% -11.6% 10.6%
  5   22.0% 1.6% 0.0%
  10   16.0% 3.3% 0.0%

 

 EFFICIENT PORTFOLIOS

 

  EP 1 EP 2 EP 3 EP 4
Oil 15% 10%    
Stocks 53% 40% 50% 25%
Bond 32% 45% 50% 75%
Cash   5%    
         
RETURN 12% 11.5% 11% 10.25%
RISK 8.5% 6.5% 9.25% 7.75%

 

 

 

Using the services of a financial adviser the investor can make his money grow. Use aggressive growth when the financial markets are growing, switching to conservative when markets are volatile so that maximum return can be achieved without severe erosion of investor's capital.

 

 

 

 

 

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