Facts and Figures
Capital Markets work efficiently
Depending on life circumstances, investment goals and the ability to bear risk, portfolios with different compositions are ideal. Income-oriented strategies can best be covered with the money market and with bonds. Growth-oriented strategies with a mix of bonds and equities. Capital growth with optimally combined equity portfolios.
How investments developed historically
Take into account effects of inflation
Determine Investment Horizon
The higher the proportion of shares in a portfolio and the more smaller and favorably valued companies it contains, the higher the fluctuation risk. This is the way to achieve the most attractive returns in the long term.
Investment Strategy defines future success
Strategy development is the key to investment success. The financial science of the last 50 years has developed a powerful set of tools that shows those risks that are worth taking. It shows which risks yield regular returns and, just as important, which risks go uncompensated. Depending on life circumstances, investment goals and the ability to bear risk, portfolios with different compositions are ideal. Income-oriented strategies may be best served with the money market and annuities. Growth-oriented strategies with a mix of bonds and stocks. Capital growth with optimally combined equity portfolios.
Pyramid of risks
|+||Small cap premium|
|+||Equity premium||Equity premium|
|+||Default premium||Default premium||Default premium|
|+||Term premium||Term premium||Term premium||Term premium|
|Real risk free interest rate||Real risk free interest rate||Real risk free interest rate||Real risk free interest rate||Real risk free interest rate|
|Expected Inflation||Expected Inflation||Expected Inflation||Expected Inflation||Expected Inflation|
(T-Bills, Short Term riskless rate)
|Government Bonds||Corporate Bonds||Equities large cap.
(DAX, SMI, S&P 500)
|Equities small cap.
Consider individual needs and circumstances
The price movements of asset categories differ from each other. An optimal composition of asset classes therefore takes into account personal tolerance for risk, individual goals and life circumstances.
You have invested:
Value of your investment:
Value of your investment (inflation-adjusted):