Investment Simulator

Build Your Portfolio

Choose markets and companies, set your investment amount, and see how your portfolio could grow over time.

Investment Settings

$
$
1 year 30 years

Your Portfolio 0 selected

Select investments from the right panel

S&P

S&P 500

SPY • Index Fund

+10.0%

avg return

500 largest US companies including Apple, Microsoft, Amazon

Volatility: Medium Fee: 0.03%
VTI

Total US Market

VTI • Index Fund

+9.5%

avg return

Every US stock - large, medium, and small companies

Volatility: Medium Fee: 0.03%
QQQ

NASDAQ 100

QQQ • Index Fund

+12.5%

avg return

Top 100 tech-heavy companies on NASDAQ exchange

Volatility: High Fee: 0.20%

International

VXUS • Index Fund

+7.0%

avg return

Companies from Europe, Asia, and emerging markets

Volatility: Medium Fee: 0.07%

US Bonds

BND • Bond Fund

+4.0%

avg return

Government & corporate bonds - lower risk, steady returns

Volatility: Low Fee: 0.03%

Real Estate

VNQ • REIT Fund

+8.0%

avg return

Real estate investment trusts - malls, apartments, offices

Volatility: High Fee: 0.12%
Understanding Investments

How Companies & Shares Work

Learn how companies divide ownership into shares and discover the smartest ways to invest your money.

What Are Shares?

When a company wants to raise money, it divides its ownership into tiny pieces called shares (or "stock"). Each share represents a small piece of the company.

Example: Apple Inc.

  • Apple has ~15.5 billion shares outstanding
  • If you buy 1 share, you own 0.0000000065% of Apple
  • That tiny ownership gives you voting rights & potential profits

Key insight: More shares = more ownership. But you don't need many shares to benefit from a company's growth.

How Stock Prices Work

Stock prices change based on supply and demand. When more people want to buy than sell, the price goes up. When more want to sell, it goes down.

Prices Go UP When:

Good earnings, new products, positive news, growing demand

Prices Go DOWN When:

Bad earnings, scandals, economic fears, too much selling

Remember: Daily price changes are often just noise. Long-term company performance is what matters.

The Best Ways to Invest

Evidence-based strategies used by professional investors

1

Index Funds First

Start with broad market index funds like the S&P 500. They give you instant diversification across hundreds of companies with very low fees.

Best for beginners

2

Dollar-Cost Averaging

Invest the same amount regularly (like $100/month) regardless of market conditions. This removes emotion and averages out your purchase prices.

Reduces risk

3

Stay Diversified

Don't put all your money in one stock. Spread across different companies, industries, and even countries to protect against any single failure.

Lower volatility

4

Think Long-Term

Invest money you won't need for 5+ years. Short-term trading is gambling. Long-term investing with compound growth is how wealth is built.

Time is your friend

5

Keep Costs Low

Choose low-fee index funds (0.03%-0.20%). High fees compound against you over time and can eat up hundreds of thousands in returns.

Fees matter a lot

6

Don't Panic Sell

Markets drop 10-20% regularly. Stay calm and keep investing. Historically, markets have always recovered and reached new highs.

Control emotions

Index Funds vs Individual Stocks

Index Funds Individual Stocks
Risk Level Lower - diversified Higher - concentrated
Research Needed Minimal Extensive
Potential Return Market average (~10%/year) Higher OR lower
Fees Very low (0.03%) Trading fees may apply
Best For Most investors Experienced traders

Pro tip: Most professional fund managers fail to beat index funds over the long term. If the pros can't do it, why try? Just buy the index!

Simulator Methodology

How We Ensure Accuracy

Our simulator is built on rigorous financial research and historical market data to provide realistic projections

33+ Years of Data

Returns and volatility based on actual market performance from 1990-2023. Index funds use long-term CAGR, individual stocks use 10-year historical averages.

1,000 Simulations

We run 1,000 Monte Carlo simulations using geometric Brownian motion to capture the full range of possible outcomes, not just averages.

Asset Correlations

Portfolio returns account for historical correlations between assets. Bonds negatively correlate with stocks, tech stocks move together, etc.

Market Regimes

Simulations model different market conditions: bull markets (30%), normal markets (40%), corrections (15%), and bear markets (15%).

Fees & Inflation

Real expense ratios (0.03%-0.20%) are deducted monthly. Inflation adjusted at 2.8% annually to show purchasing power.

Dividend Reinvestment

Historical dividend yields (1.5%-3.8%) are automatically reinvested monthly, compounding your returns over time.

Based on Industry Standards

Our simulation methodology follows academic research in quantitative finance and uses data patterns consistent with major financial institutions.

Geometric Brownian Motion modeling
Historical volatility clustering
Risk-return trade-off analysis
Modern Portfolio Theory principles

⚠️ Important Disclaimer - Not Financial Advice

For Educational Purposes Only: This simulator is designed for educational and informational purposes only. It does not constitute financial, investment, or legal advice. Nothing on this website should be construed as a recommendation to buy, sell, or hold any investment.

No Guarantees of Accuracy: While we use historical market data and sophisticated Monte Carlo methods, no simulation can accurately predict future market behavior. The projections shown are hypothetical illustrations based on past performance, which is not indicative of future results.

You Could Lose Money: All investments carry risk, including the potential loss of principal. The "typical" outcome shown represents only the median result—there is significant range of possible outcomes both better and worse. In some scenarios, you could lose a substantial portion of your investment.

Consult a Professional: Before making any investment decisions, we strongly recommend consulting with a qualified financial advisor, broker, or investment professional who can provide personalized advice based on your specific financial situation, goals, risk tolerance, and time horizon.

This is a simulation. Real markets can go up and down unpredictably.
For education only. Not financial advice.