Permanent Portfolio Fund

The idea for permanent portfolio funds that you have a mutual fund that could withstand any market conditions. This was accomplished by investing in many different types of securities. Putting emphasis on investing in things that you could find outside of the stock market.

A permanent portfolio school of thought was to invest in an equal proportion of stocks, bonds, cash, and gold. Therefore, the original investment mix was 25% of each type of investment. In today’s conditions the current composition of the fund is 25% precious metals, 10% Swiss franc bonds, 15% real estate and natural resource stocks, 15% aggressive growth stocks, and 35% in government securities such as T-bills. In this way investors funds regardless of what happened in the economy feel more secure. Although with this fund you have to expect a slow and steady growth curve. This type of fund has been proven to gain value steadily over time.

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NEW YORK (Fortune) — Very few of the esoteric funds touted during the last boom protected investors from the severe downdraft of 2008, but some stumbled far less than others.

One of those that fared better was the Permanent Portfolio fund, which has Morningstar’s top-notch five-star rating. The fund fell 8.4% in 2008, versus a severe 38.5% drop in the S&P 500 index (SPX). And despite its down year, the fund has a five-year annualized return of 6.6%.

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