Hello fellow investors and casual readers,
Holidays are basically over and for me that means that the time has come for yearly recapitulation and establishing investment plans for 2020.
This has been a very interesting year for me and my portfolio as well. At the beginning of 2019 I had to liquidate almost every investment to put down payment for an apartment I’m buying together with my girlfriend. On one hand, I was able to afford this down payment from my own investments, on the other hand my investing career was basically over. So 2019 was the year dedicated to the recovery of my portfolio.
Don’t forget to read My Investment Policy Statement and My Financial Situation to understand the environment in which I live and invest. This will help you to understand my financial goals and how much I’m able to put aside.
Current Portfolio Value
As of 31.12.2019 my portfolio’s value is EUR 9,841. I’m happy that it has been able to recover from the resolution of my living situation after which I was left over with just a few hundred of euros in mutual funds. My initial investment of EUR 9,090 has brought EUR 751 of total profits. Regarding tracking of fulfillment of my financial independence goal of EUR 500,000 I have currently 1.97% of that amount.
My portfolio consists of 4 main categories – traditional mutual funds, index funds, crowdfunding and individual shares. This is around 90% of the total value. The rest comprises of instruments such as cryptocurrencies, cash and savings account. You can read about more details of each category HERE. Being an EU citizen, my portfolio consists mainly of EUR denominated investments (79%). USD denominated securities are shares traded on US stock exchanges and 1 mutual fund managed by local asset management company in US dollars. Other currencies are mainly Chinese yuan and Indian rupee in which I invest through mutual funds provided by French asset management company.
Regarding profitability, most of my profits are related to stock market comprising of index funds, mutual funds and individual shares. The majority of profits is related to those instruments (EUR 591). Crowdfunding yielded total profits of EUR 195.
Portfolio Development In December
In December 2019 I successfully met the plan of net investments and total monthly profit. I was able to invest EUR 1,157 and meet the planned EUR 1,100 and my monthly return was EUR 140 which is 1.7% of the opening balance as of 1.12.2019 (plan is 0.5% monthly). Exceptionally good return was the result of the recent rally in the stock market due to decrease of tensions between the US and China. Thus, my mutual funds, index funds and individual shares were able to earn EUR 106. This was accompanied by strong crowdfunding profit of EUR 65 due to receipt of few cash back bonuses from Flender of 5% of all investments.
Regarding my investment allocation in December, I invested a lot into crowdfunding (EUR 1,283) mainly to Flender and CrowdEstate. My cash position prepared for investments decreased from EUR 1,100 to EUR 490. Other than that, there were just monthly investments to index and mutual funds and some transfer of free cash to the savings account due to current marketing campaign by local digital bank, which is offering a risk-free savings account yielding 3% p.a. after tax.
Plan For 2020
For upcoming months, my planned investments are in the amount of EUR 1,100 per month, which is around 50% of my net salary. As my long-term return goal is 6% p.a., I additionally want to achieve 0.5% monthly return from my investments. By combining assets which fluctuate over time such as shares, ETFs and mutual funds with fixed income instruments such as crowdfunding and term deposits, I should be able to partially mitigate expected losses from future market drops. My yearly goal is to increase the value of my portfolio to EUR 25,000 as of 31.12.2020.
Regarding portfolio composition, I plan to add ETFs during the year 2020 if interesting price entry will be available (market crash or significant market correction). At current historical records, I’m simply not interested in increasing my exposure towards the stock market. Moreover, I’m still waiting if Revolut Trading will add ETFs to the instruments available as promised. If not, I have some local online low-cost broker available and I’ll invest through them instead. I’m still considering regular ETF investments through new Slovak start-up and their robotics advisor which is balancing the portfolio according to your needs. But this is again dependent on the development of the stock market.
Regarding my crowdfunding portfolio, I’m in the process of transferring money from Mintos to some other platforms. I will probably invest some to already reviewed ones (e.g. Flender) and the rest will be used to try new platforms as well. I will probably keep some money in Mintos just to track the situation and to test some new features if those will be introduced.