This investment portfolio includes many different investing probabilities based on the future and past forecast as well as the present analysis for the same. But this is entirely equity allocated investment portfolio, because in equity the total investment is just half or 50 % of the total budget. Instead of it, it is observed that this investment is more risky than other investments but the return the investor will get will be much higher than other investments. Thus the above portfolio is very much recommended for high amount of investment such as here £500,000 this amount is for investment which is good enough for investment.
As illustrated, this investment portfolio will have the short term bumps but we analyse that for a longer period like more than 10 years the total return will be high and will be among the best five investment returns. The core equity options for investment have generally six types of funds. Out of six four funds are in major investing areas or major regions in the world of USA Stock exchange market, Europe Stock market, Japan Stock Market, Asia (Excluding Japan) Stock Market etc. The rest two equity funds belong to global equity fund and Singapore equities funds.
The above four main region for investing the fund in different sectors gives us the opportunity or flexibility to choose the type of fund for investing based on the higher returns. As you can observe that the weightage we are assuming that will give higher return on investment is in Asia stock market because of lower exchange rate of money. There are also higher probabilities of investing money in Asia because of developing countries where the emerging market or industries need money for its growth and development. In developing countries, India may be the best options where the market or economy is going high. Therefore we mentioned the Asian equity fund for investment in the portfolio.
The global equity fund mentioned in the portfolio will probably help in reducing the volatility of the investing fund in the aggressive portfolio. It is the most diversified equity fund among the all funds listed above in the portfolio. The Singapore investment equity fund will support the investor in some currency exchange risk over the time. By knowing this the investor can rebalance the investing amount and can invest again in between the 10 years of investment.