Investment Portfolio Simulator

Portfolio management optimizes risk-return balance allocating assets across stocks, bonds, real estate, commodities. Modern Portfolio Theory (Harry Markowitz Nobel Prize 1990) shows diversification reduces risk without sacrificing returns. Asset classes: (1) Stocks equity (ownership companies, high returns 10% annually long-term, volatile short-term 20-40% swings, growth dividend stocks, index funds SP500 VN-Index), (2) Bonds fixed-income (lend money government/corporations, lower returns 3-5% annually, stable predictable, inverse correlation stocks falls bonds rise), (3) Real estate (property physical assets, rental income appreciation, illiquid, Vietnam hot HCMC Hanoi prices up 10-15% annually), (4) Cash equivalents (savings accounts, money market, low returns 1-2%, liquidity emergency fund), (5) Alternative assets (gold, crypto, commodities, hedge inflation, uncorrelated).

Diversification strategies: (1) Asset allocation (age-based rule 100-age = % stocks, 30 years old 70% stocks 30% bonds, rebalance annually), (2) Geographic diversification (Vietnam stocks, US SP500, emerging markets, reduce country risk), (3) Sector diversification (technology, healthcare, finance, consumer, avoid concentration single industry), (4) Market cap diversification (large-cap stable, mid-cap growth, small-cap volatile high potential). Risk management: (1) Risk tolerance (aggressive 80%+ stocks young, moderate 60/40 stocks/bonds mid-career, conservative 40/60 stocks/bonds near retirement), (2) Time horizon (long-term 10+ years ride volatility, short-term 1-3 years bonds cash), (3) Rebalancing (portfolio drifts 70/30 becomes 80/20 stocks rise, sell high buy low maintain target allocation annually), (4) Dollar-cost averaging (invest fixed amount monthly $100-500, buy more shares prices low, less when high, reduce timing risk). Metrics: (1) Expected return (weighted average asset returns, 70% stocks 10% + 30% bonds 4% = 8.2% portfolio return), (2) Standard deviation volatility (measure risk, 15-20% stocks volatile, 5-10% bonds stable), (3) Sharpe ratio (return per unit risk, higher better, >1 good risk-adjusted returns), (4) Maximum drawdown (largest peak-to-trough decline, stocks -50% 2008 crisis, diversification reduces), (5) Correlation (stocks vs bonds negative correlation, stocks fall bonds rise, diversification benefit).

Vietnam investment options: (1) Stocks VN-Index (HOSE, HNX exchanges, Vingroup FPT Viettel blue-chips, SSI VPS brokerage accounts $50 minimum), (2) Mutual funds (VinaCapital, Dragon Capital, professional management, fees 1.5-2.5% annually), (3) ETFs (FTSE Vietnam ETF, VanEck Vietnam ETF, US-listed access Vietnam market), (4) Government bonds (G-bonds 3-7% yields, safe low risk, State Treasury website), (5) Real estate (property condos land, high entry $50K-200K+, illiquid, legal risks), (6) Gold (SJC gold, hedge inflation, volatile, no income). Portfolio examples: (1) Aggressive growth (age 20-30, 90% stocks 10% bonds, high risk high return), (2) Balanced (age 30-50, 60% stocks 40% bonds, moderate risk return), (3) Conservative (age 50-65, 40% stocks 60% bonds/cash, low risk stable income), (4) Income-focused (retirement 65+, 30% dividend stocks 50% bonds 20% cash, cash flow priority). Career: financial advisor $800-2500/month (personalized investment advice, certifications CFP CFA), portfolio manager $1200-3500/month (manage funds, institutions, high-net-worth clients), investment analyst $1000-2800/month (research recommendations, banks securities firms).