Alternative funds to lower risk of equity funds.
After creating my efficient frontier tool in excel, I came to realize that alternative funds such as this and $M&G (Lux) Episode Macro Fund(LU1670713921.MF$ are actually great ways to balance the sharpe ratio/risk of equity funds such as $Fidelity Funds-Global Technology Fund(LU1823568750.MF$ or $AB International Health Care Portfolio(LU0289739699.MF$ .
these two are screenshots from my excel sheet that uses the solver functionality to automatically find the weight age that leads to the highest sharpe ratio.
A 70/30 split between the alternative and equity fund gives a 5-year sharpe ratio of ~1 assuming a 4% risk free rate, at an average return of 14.11% (annualized of 13.88%)
I don't believe I have bond or gold funds in here so I might fix that in the future.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Yr 3 Banking & Finance student w 2 yrs forex, 6 months stocks. Moo earnings hub enjoyer
194Followers
41Following
756Visitors
Follow
Thy GoD OP : An FYI that this is no different than allocating gold into your portfolio, the funds mentioned basically do track bank rates anyways, with the addition of safe havens like gold/oil to hedge against risk.