The Investment Process
Goal setting – everyone has different needs and objectives and we will work with you to establish what yours are. We will conduct a comprehensive review where we’ll find out about your existing financial arrangements and discuss with you your personal investment goals.
Risk profiling - in order to select the most appropriate investment strategy for you, it’s vital for us to understand not only your goals but also your risk tolerance. This is a measure of both your emotional and rational responses to changes in the value of your investments for example, your ability to withstand losses. With reward comes risk; our advisers use a detailed risk profiling questionnaire along with specialist software to establish the degree of risk you’re happy to take.
Asset allocation – the risk and return characteristics of an investment portfolio are determined largely by the underlying asset allocation, which in turn should reflect both the goals and term of the investment, and your attitude to risk.
Generally speaking, there are four basis asset classes; cash, fixed interest securities, property and equities (stocks and shares). The different asset classes behave differently at different times. Known as diversification, the key to successful investment is to create a balanced portfolio across a range of asset classes. Through diversification, risk is reduced.
Product Selection - this stage of the process ensures that whenever possible your money is invested in the most tax efficient way whilst remaining compatible with your objectives and investment timescales. Some examples of tax efficient products include pensions, ISAs (Individual Savings Accounts), investment bonds and various Trust based investments.
Fund selection - will research the marketplace to select the products, providers and funds that best match your investment objective. We’ll then produce a report for you, outlining our recommendations and the reasons behind them. At all times, we will endeavour to maximise the tax efficiency of your investment and minimise the costs.
Implementing your plan – once your plan has been designed and agreed, your adviser can begin implementing it. This will involve completion of all necessary documentation required to get your plan started.
However, the process doesn’t end there!
Investment decisions should never be a once only event!
Reviews – to ensure your plan stays on track to achieve your objectives and remains relevant to your changing lifestyle, it should be reviewed at least annually.
Speak to an Adviser today to make sure your investments are on track or you simply want to start the ball rolling.
