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aptus

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aptus

Re: devron post# 5308

Monday, 10/07/2002 3:13:11 PM

Monday, October 07, 2002 3:13:11 PM

Post# of 47097
Hello Devron,

Theoretically (if you completely follow the AIM algorithm) the downside protection is 0, over the life of the portfolio, because all cash can be put into equities. When this actually happens depends on the security's behaviour and the update frequency.

So although AIM uses the cash portion of its portfolio to reduce risk, it does not provide you with complete downside protection. However it does protect you somewhat by lengthening the period that you are protected in most cases.

Regards,
Mark

http://www.automaticinvestor.com
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