Only Low Risk – Low Drawdown Investments



You think low drawdown means low gains?

 

Off course low risk is usually correlated with low gains.

But take some time to think at other factors.

As you know well many funds give some gain for some time, maybe some months and suddenly they have been hit by a pretty big drawdown.

In some cases you can lose just the profit, but unfortunately many times you will lose part of your principal capital.

At this point when you realize the real risk that you have you can decide to get out of the investment. So you lose money, TIME and confidence in investing.

As large drawdowns are so ordinary it's very common that when you invest in an other fund you will incur in another drawdown.

In short, even if you're in a so "high profit account", the drawdown erase the profit, the capital and …your confidence.

So a low drawdown account at the end results not only less risky but also more profitable.

Many volatile accounts that can have some months with a 40% of gain in a single month struggle to make a total of 30% in a year, and if you're unlucky and you begin to invest in a month with a big drawdown it will be very hard to recover.

So the stability of the account is another important factor.

Low volatility and low drawdown … this the key and not 1-2 months of 50% of profit!

 

SHARE :