Mutual Funds, Venture Capital, Stock Market discussed on Money For the Rest of Us


Percent in alternatives and and those sort of a kind of goes from that's casa from ten to fifty eight and the larger the endowment the more they have in these alternative investments and again this three portfolio better than than all them so the question is maybe alternative investments didn't do as well and that's one of the things i first look at looked at i thought well how have for that 10year period did alternative investments do and actually didn't do too badly this is this is thompson one data that some indices that they put together now these are our time waited returned and so it doesn't factor in the cash flow timing of these investments most alternative investments you should consider do what's called an internal rate of return calculation a dollar way to return so the return you calculate reflects when the money was received by the manager and when they senate back to the investor because the manager controls that decision within the private equity space if you're investing in vanguard mutual funds to you control when you send money in an want your money back in which case that's why time wait a returns are their cashless neutral dollar way to return to reflect those the timing of the cash flows but thompson one does some time waited indices looking at on aggregate how venture capital has done by out funds and other alternative investment so they show for the ten years ending june 2016 it venture capital and biotech funds each returned around 10 percent annualized so they did better than the stock market that the us stock market over the 10year period as many as measured by the van gogh total stock market index fun returns seven point three percent.

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