Before taking any significant investment decisions or defining a long-term financial plan, it’s essential to craft a solid investment strategy. Every investor has different financial goals, and a personalised investment strategy is thus needed to meet individuals’ unique requirements.
Developing an effective, sustainable investment strategy is key to ensuring that an investor’s wealth is protected and grown over the long term. Moreover, a success plan will ensure that investors’ future financial needs are met, regardless of the market conditions that may prevail domestically and abroad over time.
Your personal private banker will devise an investment strategy and give you investment advice that is ideally-suited to your individual parameters and risk profile. Below, learn more about various types of investment strategies available to affluent, high net worth and ultra high net worth individuals that comprise Helvetia Wealth’s exclusive global clientele. Using these fundamental strategies as a starting block for your personalised financial plan, we’ll tailor an investment solution that maximises your returns and minimises risk.
MORE ABOUT FINANCIAL PLANNING
Developing a personalised financial strategy is vital to effective wealth creation and asset management. In a time of volatility and change, protecting and growing your assets involves precision, ongoing supervision and an expert knowledge of global markets.
At Helvetia Wealth, we specialise in creating financial solutions that are tailored to the individual goals of each investor. This meticulous planning, combined with constant monitoring of each portfolio, ensures that assets perform at their peak during all market conditions.
Read on to find out more about Helvetia Wealth’s specialised financial planning and asset management solutions.
Various types of investment strategies exist, each of which is appropriate for different investors at different stages of life. Of these, strategies may be classified as passive or active. Passive management does not aim to seek out rewarding investment options or trends that may yield impressive returns. Instead, it entails investing in an array of indexes, and accepting average but relatively stable returns over time. Active management, on the other hand, calls for the superior market knowledge of financial specialists, who use their expertise to secure the most profitable investment opportunities for clients – usually by timing the markets carefully and transacting accordingly.
Passive management strategies may be fairly rewarding over time, and are appropriate for those investors who wish to minimise risk. These strategies have lower transaction costs and generally garner fairly average returns. Active strategies are recommended for those investors who wish, or are able, to take greater financial risks in order to enjoy greater rewards. Investments always carry a degree of risk, and your financial analyst will assess your individual risk profile before advising you on the appropriate investment strategy for your level of risk tolerance.
DEFENSIVE VS. AGGRESSIVE INVESTMENT STRATEGY
It is important for investors to note that the higher the returns of a particular investment, the greater the associated risk. Through careful, long-term research, analysts have confirmed that there are no high return/low risk investments, and thus it can be said that the relationship between risk and return is always directly proportional.
For this reason, investors who are focused on retirement planning, for example, are encouraged to consider a more conservative investment strategy that will yield steady returns over time. Younger investors, and those who can afford to take greater risks, are ideal candidates for more aggressive portfolios. The financial risks they face are far higher than those associated with conservative strategies, but the rewards are likely to be significantly greater. Essentially, investors will choose between defensive, aggressive and balanced investment strategies, based upon their defined tolerance for risk.
Defensive investment strategies are recommended for those investors with a low tolerance for risk. This type of portfolio management aims to limit the risk of losing one’s principal sum, by investing in low risk/low return bonds, stocks and cash equivalents.
Aggressive investment strategies aim to achieve maximum returns, and are recommended for investors with a high tolerance for risk. A significant portion of assets will be placed in higher-risk equities, as opposed to the safer securities favoured by defensive investment strategies.
Balanced investment strategies strive to balance investment risk and return, yet it must be noted that these strategies carry slightly more risk than conservative approaches that focus on capital preservation and current income. These types of portfolios are usually split equally between fixed-income securities and equities.
TAILORING YOUR PERSONAL INVESTMENT STRATEGY
Helvetia Wealth’s financial managers, investors and advisors are qualified to assess your risk profile, your financial goals and your investment parameters. They’ll work with you to devise the right investment strategy to maximise returns and lower risk, while meeting your current and future financial goals. Choosing the right investment strategy is vital to the success of your portfolio, and to the protection and growth of your assets in a way – and within a timeframe – that suits you.
Speak to Helvetia Wealth today to find out more about our individualised investment strategies and wealth management solutions.
