The low risk portfolio

Are you an investor who likes to get a good return with reduced risk?

A number of people have have spoken with have expressed a desire to enjoy significant returns with reduced risk. Many are retirees or those near retirement who should have a lower risk portfolio. Others are younger investors who have a hard time watching their investments swing up and down. If you happen to be one of these investors I have created the low risk portfolio. This portfolio consists of the best balanced funds and the best bond funds.

You may ask why not put your money in just one fund? The reason behind multiple funds is diversification. By spreading out your risk over several funds which are run by different firms with different research and differing investing philosophies you are further reducing your risk.

If you are just beginning to invest and want a fund that has delivered nice returns in the past with less volatility than the stock market the Oakmark Equity and Income Fund symbol OAKBX is a fund which has a 1000 dollar minimum to open an account. An IRA (traditional or Roth) as well as a regular taxable account have the same minimums for the Oakmark funds.

If you want one fund that most has a low chance of losing money, invests primarily in bonds and pays better than a CD consider the TCW Total Return Bond Fund. This fund is up over 8 percent per year over the last three and up over 7 percent per year over the last ten years. This fund has a 2000 dollar minimum if you invest through TCW directly.

Low risk good returns

The low risk portfolio is composed of

Oakmark Equity and Income Fund symbol OAKBX

Permanent Portfolio symbol PRPFX

Greenspring Fund symbol GRSPX

PIMCO Total Return bond fund symbol PTTDX

TCW Total Return Bond Fund symbol TGMNX

With 20 percent of you assets in each fund your return would have been as follows:

Over the last eight years April 30, 2002 to April 30, 2010 the portfolio would have been up 78 percent. Over the last three years the portfolio was up 20 percent. Even in one of the worst years in history for investors 2008 the portfolio lost 8.2 percent. The NASDAQ lost over 40 percent during 2008.

Some of these funds are only eight years old but if you would like to look back the Greenspring Fund has done well for years. This fund is up almost 9 percent per year over the last ten years. Since its inception in 1983 this fund has produced a full 10 percent per year (that is a 13+ fold increase in 27 years)!

You don’t need to take significant risk to obtain good returns.If you want to get nice returns with less risk this portfolio may be just for you.

As a note this hub was published on May 4, 2010. This portfolio did lose money from May 4 to May 26. This portfolio lost less than 2 percent in that time. At the same time the NASDAQ market lost 10 percent. You be the judge if you can stand that type of risk. I intend to publish results as to how this portfolio performs in good markets as well.

As a later note from May 4, 2010 the publish date of this hub to September 14, 2010 this portfolio gained 1.6 percent. The NASDAQ lost almost 6% in that time frame.

As of November 8, 2010 the low risk portfolio is up 11% since May 4, 2010. The NASDAQ index is up 7.4 percent. The low risk portfolio has exceeded my expectations. You don’t have to take high risk to get handsome returns.

Comments 5 comments

lctodd1947 profile image

lctodd1947 6 years ago from USA

I am glad you have given this advice. If a person does not understand the market; it can be very scarey to say the least because we do not like to lose money. This is informative for me and your expertise is appreciated.

Thank you for sharing.


FinancialBondage 6 years ago

Low risk would be for me at this stage of the game. If I can ever get to the investing stage of the baby steps. Seems I'll never get there.


Susan Carter profile image

Susan Carter 6 years ago

Being very careful in today's market is critical because of the volatility. Thanks for the advice.


chan0512 profile image

chan0512 6 years ago from Camarillo, CA

thanks for sharing. Great info.


Harvey Stelman profile image

Harvey Stelman 5 years ago from Illinois

Daddy Paul,Thanks for the info, I'm still holding $5 Silver pieces. That's hard to beat!

1- Thank you for the follow, you honor me by this! I will look at your writings after things calm down with my book. I am going insane answering mail from other sites, I have over 4,000 people to get back to, one by one! Of course I have to ask you to take a gander at EYES OF EMERALD. It is on Amazon, Kindle and Creatspace.

2- The story is one that my father told me about a cousin of ours in 1930's NYC. It is full of adventure, ac, romance, ethnic traditions, a curse and much more. All comments have been wonderful.

3- The book has sold in at least fifteen countries in only four weeks. I am going to be interviewed by newspapers, and radio shows. This is all very exciting to me!

4- Be well, H

The book has sold in at least fifteen countries in only four weeks. I am going to be interviewed by newspapers, and radio shows. This is all very exciting to me! H

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