How does our Mutual Fund differ from the others?
90%
The base. The S&P 500 is the most secure mutual fund that exists. In this way, we keep your investment secure and steady.
10%
The Volatility investment which employs more risk and high returns.
Our Mutual Fund bring them both together.... in a balanced, responsible manner.
1/3 What is the Standard and Poor's?
The S&P mutual funds are the most secure mutual funds on the stock market. The S&P 500 is a market index made up of the prices of 500 largest stocks traded in the US market. These mutual funds are the most popular to be found. 90% of a client's investment is invested in the S&P 500.
2/3 What is the Volatility investments?
Sometimes stock prices move more quickly than at others. The speed or degree of the price change (in either direction) is called volatility. As volatili increases, the potential to make more money quickly, also increases. The tradeoff is that higher volatility also means higher risk.
There is an index known as the VIX, which is an abbreviation for "volatility index." Its actual calculation is complicated, but the basic goal is to measure how much volatility investors expect to see in the S&P 500 Index over the last 30 days, based on prices of S&P 500 Index options. When options traders think the stock market is likely to be calm, the VIX is low; when they expect big swings in the market, the VIX tends to go up.
I have been studying and trading VIX, for the past 25 years. I have come to understand its inherent risks and returns. I devised a system that capitalizes on the returns, while minimizing the risks. It keeps my clients money safe while leaving potential for high returns.
3/3 Bringing It All Together
When we invest 90% in the S&P, we do so for stability. The 10% in volatility gives us the edge to make high returns, and the third leg is how we make sure to keep those returns. After the volatility yields double the initial investment, we transfer the initial-half principal to join the other funds in the S&P. In this way we keep 100% of the initial investment in the S&P 500. This system, in its entirety, has been aggrieved-netting 19% per year for its investors. (S&P-500 13%, Volatility 20%).
This is a diagram of back testing our system. The percentages indicate the income growth in regard to the VIX over the last 12 years, when the VIX (ETF) stock was created.
S&P 500 Blue Made/Lost | Volatility Becomes The S&P 500 | Volatility 10%
FAQs
Here is what is happening to your investment.
60% is in the S&P - the normal weight (Beta which is 1).
30% is in tech - which is a sector in the S&P 500 (Beta, which is 2),
10% in volatility (Beta, which is 4).
Another option is to customize these parameters to your investment goals.
An opportunity for both of us.
We charge an annual 2% investment fee, while you can keep the higher percentage.
However, if come year end, your account has lost out, you will not be charged. We will charge the accumulated percentage only when your account recovers.
For example, you will be charged 4% the year after your account experienced a hiccup (without being charged 2% in the intervening year.) The following year, the charge will return to 2%.
Will my account experience drawdowns?
All investments have drawdowns.
Can Volatility be terminated ?
In 2018, the Volatility has been restructured with a safety-catch to secure it. Like any other investment, the answer is yes. it can terminate, as can any Exchange Traded Product. Therefore, I invest no more than 10% of the portfolio, Responsibly.
Yossi Federman
has been working in this industry for over 28 years. He studied finance in Touro College. Before 2005, he traded regularly and successfully. In 2005, he suffered a brain aneurysm, and recovered remarkably.
646-261-0550