High-risk high-reward portfolio heavily focused on tech and financial sectors with speculative profile

Risk profile

  • Secure
    Speculative

The risk profile, derived from past market volatility, reflects the level of risk the portfolio is exposed to. This assessment helps align your investments with your financial goals and comfort with market fluctuations.

Diversification profile

  • Focused
    Diversified

The diversification assessment evaluates the spread of investments across asset classes, regions, and sectors. This ensures a balanced mix, reducing risk and maximizing returns by not concentrating in any single area.

What type of investor this portfolio is suitable for

Speculative Investors

This portfolio suits an investor with a speculative mindset, seeking high returns and willing to accept significant risk, including the possibility of substantial losses. Such an investor likely has a high risk tolerance, a long-term investment horizon to ride out volatility, and potentially other sources of income or capital to cushion against losses. This portfolio is not suited for those requiring stable, predictable returns or with a low tolerance for risk.

Positions

  • Amazon.com Inc
    AMZN - US0231351067
    45.00%
  • Chubb Ltd
    CB - CH0044328745
    40.00%
  • ComfortDelGro Corporation Limited
    CDGLF
    5.00%
  • Avadel Pharmaceuticals PLC
    AVDL - IE00BDGMC594
    3.00%
  • Guardant Health Inc
    GH - US40131M1099
    3.00%
  • Acco Brands Corporation
    ACCO - US00081T1088
    2.00%
  • EXACT Sciences Corporation
    EXAS - US30063P1057
    2.00%

This portfolio exhibits a highly concentrated allocation, with 85% of its assets in just two stocks: Amazon.com Inc and Chubb Ltd. Such a concentration in a small number of holdings, especially with a significant tilt towards the consumer cyclicals and financial services sectors, indicates a speculative approach to investing. This level of concentration significantly increases the portfolio's risk, as its performance is heavily reliant on the fortunes of just a few companies.

Warning Historical data is limited for this portfolio, which reduces the confidence in the calculated values.

Growth Info

The historical performance of this portfolio shows an exceptionally high Compound Annual Growth Rate (CAGR) of 362.24%. However, it's crucial to note that such high returns come with equally high risks, as evidenced by the maximum drawdown of -25.59%. This means that while the portfolio has had periods of explosive growth, it has also experienced substantial declines, which could be unsettling for investors not comfortable with such volatility.

Warning Due to limited historical data, this may show extreme values that are not realistic.

Projection Info

Monte Carlo simulations, employing 1,000 iterations, suggest a wide range of potential outcomes for this portfolio, from complete loss to extraordinarily high returns. This variance underscores the speculative nature of the portfolio. While the high median and 67th percentile performance are enticing, the possibility of complete loss in 263 simulations cannot be overlooked. Such projections highlight the gamble inherent in this investment approach.

Asset classes Info

  • Stocks
    100%

The portfolio is entirely allocated to stocks, offering no asset class diversification. While stocks have historically provided high returns, they also come with higher volatility compared to bonds or real estate. This lack of diversification can amplify the portfolio's risk, especially during market downturns when different asset classes often move in opposite directions.

Sectors Info

  • Consumer Discretionary
    45%
  • Financials
    40%
  • Health Care
    8%
  • Industrials
    7%

Sector allocation shows a heavy bias towards Consumer Cyclicals and Financial Services, comprising 85% of the portfolio. This concentration can lead to higher volatility, as these sectors are particularly sensitive to economic cycles. While this can offer higher returns during economic upswings, it also exposes the portfolio to significant downturns during recessions.

Regions Info

  • North America
    52%
  • Europe Developed
    43%
  • Asia Developed
    5%

Geographic distribution is predominantly in North America and Europe, with a minor allocation to Asia. This Western-centric focus may limit exposure to emerging market growth opportunities, which can offer diversification benefits and potential for higher returns, albeit with additional risk.

Market capitalization Info

  • Mega-cap
    45%
  • Large-cap
    42%
  • Mid-cap
    8%
  • Small-cap
    5%

The portfolio's market capitalization exposure leans heavily towards mega and big-cap companies, which can provide stability and lower volatility compared to smaller companies. However, this focus might limit growth potential, as smaller companies often offer higher growth rates.

Dividends Info

  • Acco Brands Corporation 7.20%
  • Chubb Ltd 1.30%
  • Weighted yield (per year) 0.66%

The portfolio's overall dividend yield is relatively low, primarily due to its growth-focused orientation. While dividends are not the primary goal of this investment strategy, a higher dividend yield could provide a small cushion during market downturns or add to the total return in stable market conditions.

Risk vs. return

This chart shows the Efficient Frontier, calculated using your current assets with different allocation combinations. It highlights the best balance between risk and return based on historical data. "Efficient" portfolios maximize returns for a given risk or minimize risk for a given return. Portfolios below the curve are less efficient. This is informational and not a recommendation to buy or sell any assets.

Given the portfolio's current risk-return profile, there's room for optimization towards a more efficient frontier. This means adjusting the asset allocation could potentially achieve a better balance of risk and return, enhancing the portfolio's overall performance without necessarily increasing risk.

What next?

Ready to invest in this portfolio?

Select a broker that fits your needs and watch for low fees to maximize your returns.

Select broker

Create your own report?

Analyze your portfolio

Join our community!

Join Discord

The information provided on this platform is for informational purposes only and should not be considered as financial or investment advice. Insightfolio does not provide investment advice, personalized recommendations, or guidance regarding the purchase, holding, or sale of financial assets. The tools and content are intended for educational purposes only and are not tailored to individual circumstances, financial needs, or objectives.

Insightfolio assumes no liability for the accuracy, completeness, or reliability of the information presented. Users are solely responsible for verifying the information and making independent decisions based on their own research and careful consideration. Use of the platform should not replace consultation with qualified financial professionals.

Investments involve risks. Users should be aware that the value of investments may fluctuate and that past performance is not an indicator of future results. Investment decisions should be based on personal financial goals, risk tolerance, and independent evaluation of relevant information.

Insightfolio does not endorse or guarantee the suitability of any particular financial product, security, or strategy. Any projections, forecasts, or hypothetical scenarios presented on the platform are for illustrative purposes only and are not guarantees of future outcomes.

By accessing the services, information, or content offered by Insightfolio, users acknowledge and agree to these terms of the disclaimer. If you do not agree to these terms, please do not use our platform.