IFA
Index Porfolio 90
IFA
Index Porfolio 70
IFA
Index Porfolio 50
IFA
Index Porfolio 30
IFA
Index Porfolio 10
Step 11 - Risk Exposure
ANALYZE
YOUR FIVE DIMENSIONS OF RISK EXPOSURE
About 97% of the returns of diversified portfolios of index funds are explained by their exposure to five dimensions of risk. They include market, size, and value for equities, and term and default for fixed income. Once investors determine their risk capacity, they will be matched to an asset allocation which corresponds to an index portfolio. Index funds are best for minimizing fees and taxes, while maximizing diversification and expected returns. A simulated index portfolio has beaten the S&P 500 Index by about 2.5% annualized for the last 50 years at a similar risk level and net of fund and investment advisory fees.
IFA’s 20 risk-appropriate
Index Portfolios enable institutions to invest according to their own
unique risk capacity as measured by the risk capacity score. Each Index
Portfolio is comprised of risk-appropriate blends of as many as 15
indexes. IFA’s Index Portfolios provide substantial global diversification
with investments in 18,000 companies in 40 different countries. The
risk and return statistics for various time periods for the 20 IFA
Portfolios and the S&P are detailed below. |
Additional Charts and Graph from Step 11
| < Step 10 - Risk Capacity | Step 12: Invest and Relax> |
