Lobo's Investment

I am still looking for an optimal investment solution.

I have 3 different experimental portfolio.

Set A is a group of more than 10 equitites funds, mainly Emerging Markets and European funds, and gold fund as alternative investment. I seldom make change but a strong negative edge would trigger a trade; this time I converted 30% of the funds to bond fund. The average return of it is about 20% per year over the past 5 years. The total operation cost is about 2% a year, including all setup and management fee.

Set B is a group of very aggressive funds, some are leveraged index fund. 2% of the investment in put options which I took as "investment cost". After deducting the cost, the annual return is just slightly higher than set A. The total operation cost, if include the cost for put options, is about 6% a year.

Set C is a balanced setup with only 3 funds, recommended by my new financial advisor. The total operation cost is about 2.5% a year. I would compare the set with my other portfolio.

In the recent Chinese crash, set A got about 5% lost off the peak, set B lost 2%, and set C lost 8%. In this down time, the put options of set B turn out to have huge profit and offset the lost. Set C consists of too few funds and a slump in India caused a significant set back.