52 Week Money Saving Challenge Version 3.0. SEB Funds

Updated: 20 July, 2021 seen 66

About 3 years ago I started a simple, so-called 52 Week Money Saving Challenge.

The rules for this challenge are very simple - to deposit in the first week one euro, in the second week - two, third week - three, etc. The amount after each week continues to grow, up to the last week of the year, when it is 52 euros.

Back in 2018, I was saving in the jar, but I must admit I dropped the challenge after some 6 months, as we were relocating from country to country and I didn't have any more access to EUR currency, 

Back in 2020, I decided to make my second attempt with this challenge, and to add up some spice I decided to use electronic money instead of cash, by buying funds offered by SEB bank Latvia. Again I failed to complete this challenge as after about saved EUR 1,000 I faced a cash drag for Vilgāle apt renovation and I dropped this challenge just 2 months before the end of the term and paid contractors. 

Now, in 2021 I decided to make my third attempt - investing with SEB Latvia funds, but this time I will invest 2 EUR week / instead of just 1 EUR.. so in the first week EUR 2, in the second EUR 4, in the third EUR 6... week 21 EUR 42 and week 52 - EUR 104. The total money invested in this challenge will be EUR 2,756

When successfully reached the goal, I will then use the accumulated funds to invest with covered calls and make an additional income.

For this challenge, I decided to start with investing 2 EUR in SSF SEB Strategy Growth Fund UC

Date Week Invested Value Gain/Loss
05/12/2021 1 €2.00 €2.00 100.00%
05/17/2021 2 €6.00 €6.07 101.17%
05/24/2021 3 €12.00  

here is my simple table after investing with SEB funds after 3d week

The fund invests in other funds with the possibility of exposure towards a variety of different asset classes such as fixed income, hedge funds, equities, commodities, and currencies as well as instruments related to real estate and private equity.

The return of different asset classes varies over time depending on structural and cyclical factors as well as short-term market trends. The aim of the team is to identify these factors as well as to identify talented managers who can create excess return given the fund's risk level. This is done through a structured process with the aim of obtaining an optimal mix of asset classes. Not being tied to a benchmark increases the chances of good risk-adjusted returns over time.

Investment Universe

The Fund mainly provides exposure to a combination of funds investing in equities, bonds and hedge funds but depending on market conditions, parts of the assets can be invested in funds with exposure to commodities and currencies as well as instruments related to real estate and private equity. The exposure is usually achieved by investing in other mutual funds, ETFs (exchange-traded funds) and index futures. By adapting the choice of assets to the prevailing macroeconomic climate the management team aims to create a smoother return profile over time. 

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