April 30, 2020

How much return do the best investors make?

It is the ideal picture that a large part of the population is striving for: an early retirement thanks to the right choices. As a working Dutchman with a stable income, if all goes well, after a number of years there will be a surplus in your assets. To put it very simply: there is more coming in than going out. In this privileged situation you can start thinking about your possibilities. What are you going to do with the money? Where it used to be much more common to put it away in an old sock, nowadays there are a lot of options that are much more interesting.

One of these options is investing. This is a very broad term that can cause a lot of confusion and ambiguity. If we take the definition for the complete layman, it is as follows:

"An investment is a form of investment in which money is committed for a longer or shorter period of time with the aim of obtaining a financial benefit in the future".

As an investor, you therefore invest in order to gain financial benefit from this later on. The questions then remain, what do you invest in and what financial benefits can I expect? In order to answer these questions, we would like to quote a number of examples to show what the various possibilities are and the associated returns. First of all, it should be clear that the average return on equities is 8% per year, and 5% per year on bonds.

VOC Beleggen - 60,9% return since 1 January 2017

If you look at the return of the VOC fund, you're already counting yourself rich. It is a fund founded in 2017 with a particularly aggressive tactic. Whereas most asset managers also focus partly on an index or comparable safer options, the VOC fund is entirely focused on equities. The strategy works as follows;

Double (2x) long/short equity strategy with a long bias

Globally diversified low-volatile equity portfolio complemented by alternatives and active option strategies

VOC Fonds uses active short strategies to hedge risks and optimise returns, but always has a continuous net long position because of the leverage.

It is a high-risk strategy based on active trading of the positions taken. As a result, the return in 2017 was 38.2% in the plus but 23.7% in the minus the following year. This is a major blow that investors have had to endure, however, this was more than made up for in 2019 with a return of no less than 52.6%. This is one of the best performing funds in the Netherlands.

IBS Capital - 47,2% since 1 January 2017

One of the asset managers that has been participating for some time is IBS Capital. It is a large party based in Amsterdam that manages more than two and a half billion assets. With these parties, it is customary to choose an investor profile based on your personal preferences. At IBS Capital you have the possibility to choose from very defensive to very offensive. The difference in return is very large. With a very def ensive profile the investor had a return of only 1.8% compared to 47.2% with a very offensive investment profile. The philosophy of IBS Capital is as follows:

- Active management: we are convinced that active management is superior to passive management.

- Risk management: Large losses must be prevented at all times. They cause permanent damage to your assets.

- Socially responsible: our investment strategy is 100% sustainable.

- Model-based: A long-term investment strategy only works if it is implemented consistently.

It should be noted that IBS Capital is one of the parties where your assets are managed. The size of positions in equities, bonds and alternatives is constantly changing in order to achieve a positive result. Behind the scenes there is a lot going on that the investor doesn't need to know about immediately.

The Digital Asset Index_COPY 871.4% since 1 January 2017

If we take a big step up we arrive at the cryptocurrency funds. An example of a company that offers these funds is Bitwise. In collaboration with the traditional bank Morgan Creek, they started their fund at exactly the right time, January 1, 2017. From that moment on, the overall cryptocurrency market suddenly received a lot more attention and soon found itself in a fast lane. The market, led by bitcoin as an asset, quadrupled in one year. After a period of sharp decline, the fund has risen slightly again, but overall the fund has outperformed any other traditional fund. The strategy pursued by the fund is:

- Owns the top digital assets
The fund aims to track the Morgan Creek Bitwise Digital Asset index which is comprised of the largest digital assets covering approximately 75% of the market. It uses a robust methodology to track the unique challenges of the crypto market.

- Catch the evolving market
The crypto market is constantly changing. In order to catch the full value without causing unnecessary churn, the fund is updated monthly.

- Invest with confidence
Funds in the fund are 100% secured in cold storage, trading is done using various liquid options, and tax returns are prepared early.

What do these funds have in common?

Regardless of which fund you approach from all the high-performing parties in the Netherlands and surroundings, it is not for everyone. Most funds have a minimum investment of over €100,000, which is a considerable amount for someone who wants to start investing. The more conservative options are available for this investor with a smaller portfolio, but they do not have the same return. In addition, the management of these funds is done by people. They are people who are in control of the assets of their clients and who make choices for the positions taken on the basis of analyses. They make these choices in consultation with analysts and other asset managers. The choices are not unfounded, but human emotion is inevitable, which can lead to incorrect decisions. But, is there an alternative?

CBS By Altrady - 45% since 2 December 2019

Nowadays, asset management and active investment are no longer carried out by people alone. The vast majority of transactions on the stock exchanges are handled automatically by smart computer scripts. These are robots that can act without emotions and take positions at exactly the right moments. This brings us to the option available to everyone: BOTS by RevenYOU. In the mobile application of BOTS you can choose different trading bots which will take care of the investing for you. The Crypto Base Scanner created by Altrady uses advanced strategies that continue to trade day and night.

As the CBS bot has only been available since the beginning of December, it is not possible to make a representative comparison with the previously mentioned alternatives. However, the current yield is very promising for the future. In addition it is possible to make use of this trading bot as from an amount of €50. Suddenly the high returns are available to everyone. When do you get in?

Investing is for everyone

Everyone should be able to invest. And now they can. With BOTS. Together we are going to make the world of investment fairer and more transparent. Are you interested, but your question hasn't been answered yet? Take a look at the FAQs on our site. Or contact us, we will be happy to explain it to you in person.

The BOTS app is now live

Important update: We are now out of the beta testing phase, download the BOTS app on your mobile phone today! For Android click here, for Apple click here.

There is no such thing as risk-free trading. It is possible to lose (part of) your stake.