Investment portfolio

Abstract

The present invention is a method, system and investment product for allocating or structuring investment assets (such as marketable securities, bonds, mortgages, or other property interests, options or derivatives). The system, method or product enables selecting or grouping a number of individual financial instruments together into a portfolio (e.g., a fund or trust) and assigning weight coefficients to the selected financial instruments based upon a predetermined scale. After assigning the weight coefficients, the system or method purchases the selected instruments based on the allocated total purchase for each instrument (i.e., the total price of each instrument reflects is the price per unit×number of units, which correspond the predetermined weight coefficient). Then, the purchased individual financial instruments are allowed to fluctuate and perform for a predetermined time period (i.e., a number of years and months) without any further significant adjustments to the initial portfolio.

Description

[0001] This application is a continuation of U.S. patent application Ser. No. 10 / 015,003, filed on Dec. 11, 2001, which claims priority from U.S. Provisional Application 60 / 306,082 filed on Jul. 16, 2001, which are incorporated by reference.BACKGROUND OF THE INVENTION [0002] The present invention relates to diversified long term investing. [0003] For centuries businesses have issued publicly traded securities to fund the business' operating capital or enable growth. There are two basic types of securities: bonds that represent debt, and stocks that represent ownership or equity interest in the issuing business. Bonds represent the promise of the business to pay a fixed sum at a specified maturity date plus interest at regular intervals until such date. There are numerous types of bonds such as convertible bonds, income bonds, or linked bonds. Stocks (or units) give an owner a right to a share of dividends and other distributions of the underlying business, to vote for directors and ...

AI Technical Summary

Benefits of technology

[0057] The present method, system and investment product provides the ability to systematically invest in the entire market overtime without investing 90% of the money in the top 1000 (or less) companies or having the future best performing stocks sold out of a small cap or mid cap stock fund, as these stocks grow. The present method, system and investment product envisions formation of similar trusts at regular time intervals. The present method, system and investment product helps to ensure optimal returns because more shares of future “winners” are acquired when their prices are low and fewer when they are high (as is done using another method called “dollar cost averaging”).

[0058] The present method, system and investment product ensures that investors can systematically invest their money so that they do in fact have si

Problems solved by technology

The selected stocks or securities are kept in the created fund or trust and are not sold due to a large increase in value (e.g., are not sold when moving from one index fund to another), nor are they be sold because they no lo

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