Model portfolio for an imaginary client

By Vojtěch Jirásek Here I created a portfolio for a client with 1,000,000CZK on their newly made account. The portfolio is balanced in three different industries: healthcare, IT and industrials, which involves a risk profile, meaning that the investor needs to have the willingness to take risk for his individual and essentially emotional property. It is important to first assess whether the client is ready to suffer financial losses initially with the hope of higher earnings in the distant future or prefers a small secure and sustainable yield from the beginning. In this case the client should be ready to tolerate potential losses and seek to achieve higher yield. On the other hand the investment into gold is going to have a much lower risks associated with it, but also lower rewards if the price does increase. This is because gold prices have been increasing with a very gradually, but yet positive, trend in the last few months, as seen on the graph below.