Portfolio Update June 2018

… or how we started to diversify our portfolio.

At the start of the year, our biggest success, our daughter was born. But with her birth a new idea starting to form. And that was to provide her with a substantial safety net when she will turn 18.

I chose a low risk investment: Mutual Funds (and I say Funds because I actual chose 3). Each month, with automatic money transfer rules, we are depositing a fixed amount, so everything is set in place. The total contribution is 300 USD (50 USD per month since May + the initial deposit of 150 in April).

I wanted to invest more in cryptocurrencys . I expected that after December they will started to rise and the correction will be lower than 75%. So at the beginning of January I invested another 140 USD. At the end of January I decided to cash out 340 USD and find another asset to invest.

New Investments

An important investment, I was planing way before 2-3 months ( it was actually April 2017), was opening a trading account (for FOREX only) to an international broker. The initial deposit consisted in the sum of 500 USD. Part of the sum came from the withdrawal of crypto.

I started to get interested in P2P lending, so after studying the fundamentals I opened up an account to one of the multiple exchanges. As normal I started with a small deposit (50 EUR) and added during a period of almost 6 months. At the end of June I had 235 USD deposited. and a profit of 3.75. It isn’t to much considering the interest of 10% offered by the loans. The reason I got so little is related to the investing strategy I adopted (you can follow the article here – link to come).

As I was testing both of the new branches of our portfolio everything that we spared went to our Economy and Emergency Fund.

Overlook on June 2018 Portfolio

During the 6 months of evolution, the new investments started to gain interest (not that much) but our portfolio increased significantly since the end of December 2017 (mostly from savings and deposits) . You can follow the proportion each asset has in our portfolio and the risk allocation. Comparing to December 2017, the risk shifted from High (mostly) to a more healthy distribution.

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June 2018 – asset distribution
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June 2018 – risk distribution
  • FOREX category, during its 4 months of activity, performed decent bringing a gain of 14%, equal to 66.25 USD
  • Crypo, considering the market blood bath, was down only 29%, equal to a loss of 165 USD and this is mostly due to trading the pairs.
  • Mutual funds, didn’t perform that well and I expected that. They were down almost 2%, equal to 3.25 USD
  • P2P started slow and I was expecting more, but if we consider the sums I deposited during multiple months (March, May and July) should have seen it coming. Still there was a small gain of 2% equal to 3,75

All things taken into consideration, that is a -7% on profit, but an increase of 62% of investment portfolio.

AssetDec 2017DepositEnd PeriodGainGain %Increase %
Mutual Funds0300296.75-3.25-2%98%
Asset Increase: Asset, Deposits, Realized Profit, Increase versus December 2017

We managed to put aside almost 2100 USD in economy, so we saw a 263% increase in our saving accounts. The total at the end of July nearing 2600 USD.

AssetDec 2017DepositEnd PeriodGain %Increase %
Economy Fund490103915370200%
Emergency Fund0110011000100%
Asset Increase: Asset, Deposits, Realized Profit, Increase versus December 2017

Now we are receiving some passive income ( in its full definition), we have a healthier portfolio and we are looking further to the next investments. The current plan is to continue to increase the sums we have in the current assets and pay out part of our personal loan. The next step in our journey is coming soon and I hope that in the next 6 months we will manage to reach another milestone.

Thank you for reading this!

Disclaimer: I am not a financial consultant, all the information you find here are my decisions, I taken in that moment, on my own analysis. I am open to any type of discussion about money. If you want to replicate my portfolio take into consideration that it is your money.

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