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Development of a personal Investment strategy, optimization of risk and Return
The development of personal investment strategies involves a preliminary analysis of the financial goals of the investor, determining his investment horizon, risk tolerance, the required breadth and depth of portfolio diversification.
Depending on the appetite for risk and ambitious investment goals, an investor may be inclined to either a riskier strategy or, conversely, to a more conservative investment. You need to understand that both profitability and portfolio diversification are important for a long-term investor. But it is also necessary to take into account potential fluctuations and potential losses in the value of the portfolio, since the greater the potential return in the portfolio, the riskier the investor's portfolio will be.
Risk and return are always present in the portfolio, they form its main parameters (that is, settings), which can be managed and adjusted to the needs of the investor. At the same time, it is important to take into account the individual investor's tolerance for risk (the psychological ability to endure fluctuations in the value of the portfolio), since strong portfolio fluctuations can constantly disturb the investor and prevent him from sleeping peacefully.
The psychological aspect of risk tolerance is largely determined by the individual character traits of the investor, his financial aggressiveness, so it is important to pay special attention to determination of risk tolerance before starting to develop a strategy. And for each specific investor, his risk tolerance will affect the expected return of the portfolio, which may not suit the investor's appetites (in terms of the ambitious investment goal).
The investor should make a balanced decision that will take into account his ambitions and level of risk tolerance. If the investment targets are large and the tolerance level is low, then it may be necessary to increase the investment horizon in order to reach the financial target with a more comfortable risk, but longer in time.
The development of an individual investment strategy is largely a joint work of the investor and IQ Smart Capital. We will help you understand your goals and understand the opportunities of the stock market, properly balance risk and expected return. Also, when developing a strategy, we will help you form the portfolio that you want, have positions in those sectors of the economy in which it makes sense in the current macroeconomic situation.
With age, an investor's attitude to risk and return changes, his family and financial circumstances change, his outlook on life, risk and return changes. All this leads to the need to annually review and adjust the investment strategy, make changes to it and bring it to the parameters that are needed and relevant for the investor today.
You can find out more relevant and useful information about modern investments in US stocks and funds on the main page of the site. Please fill out an application for a free online consultation about the service Development of individual investment strategies, and our experts from the main office in Kyiv will contact you at the next working time!
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Individual strategy development taking into account the required risk and return parameters. Unique solutions for risk diversification.
Development of unique investment solutions, taking into account your goals and objectives. Strategies aimed at obtaining a return per unit of risk.
Our Approach:
First of all, we understand and respect the financial goals of our clients. To do this, we discuss your needs and take into account your tolerance and appetite for risk. In a way, we are also trying to dissuade clients from a simplistic understanding of the market and provide a deeper understanding of the broad possibilities of the stock market. As a partner in the world of finance, IQ Smart Capital strives to create value for its clients through technology and knowledge in the field of finance and investment! Before concluding an agreement, we advise our clients, study their financial situation and the possibilities of long-term, successful and mutually beneficial cooperation.
Our Advantages:
We use a competent fundamental approach, modern analytical tools to develop strategies and implement the tasks of our clients! In our work, we focus on the stock market and ETFs of different asset classes, as these financial instruments provide an opportunity to achieve your goals and get a higher return per unit of risk than the broad market. We mainly use long-term Relative Return Strategies, the purpose of which is to obtain a higher return per unit of risk, or to obtain a similar return, but with less risk. We use a unique risk analysis and management system, which makes it possible to provide a stable return on investment and the optimal level of risk that is most suitable for our clients in the medium- and long-term period.
Benefits for Clients:
Clients of IQ Smart Capital can take advantage of modern wide opportunities of the stock market, have their own independent and unique investment portfolio that can cover average annual inflation, can provide high efficiency and stable results in in the medium- and long-term period. A unique risk monitoring and management system allows us to adapt а current investment portfolio in advance to future changes in the economy. It also allows us to achieve a truly stable return on investment, depending on the strategy, goals and investment horizon!
A personal strategy can provide the flexibility and diversification that will achieve the investor's investment goals in the best possible way and with optimal risk. The investor will be able to organize the portfolio in the way that is most convenient for him. An investor's portfolio can include specific assets or funds that will give a good return and reduce risk, and can also provide greater liquidity. When approached correctly, the development and implementation of a personalised investment strategy are key to achieving financial goals with an optimal balance of risk and return. This strategy provides investors with the opportunity not only to diversify their portfolio but also to tailor it to their unique needs and objectives. The use of investment terminology and tools helps investors assess and select assets that best match their risk profile and desired level of return. Including various asset classes, such as equities, bonds, real estate, and alternative investments, enables portfolio diversification and reduces overall risk exposure. Additionally, investors may consider incorporating specialised investment funds or ETFs, offering access to a wide range of assets or strategies, such as asset management funds, growth funds, or high-liquidity funds. Effective portfolio management also entails regular monitoring and rebalancing of assets in line with market changes and shifts in investor objectives. This helps maintain portfolio alignment with investment goals and minimises potential losses. Thus, an individualised investment strategy is a powerful tool for achieving financial goal-orientedness, allowing investors to optimise their portfolio to suit their unique needs and risk preferences. Please order a consultation using the link below!
Any strategy is usually aimed at future profitability and at the goals of the investor, expressed in capital gains or in reaching a certain amount by a certain age. But it is important to achieve not absolute profitability and not strive to beat the market, but to achieve capital growth and profit per unit of risk. With your level of risk tolerance, your portfolio may never beat the market, but per unit of risk, you will earn market-level returns, and possibly more. Therefore, relative return strategies help you understand how successful your portfolio would be if it had the same level of risk as the broad S&P500 market. An investment strategy is typically aimed at achieving future returns that align with the investor's goals, expressed in capital growth or reaching a certain sum by a specified age. However, the key aspect is not so much absolute returns as relative returns and the relationship between returns and risk. The investor's aim should be to achieve capital growth and profit at a minimal level of risk. It's important to realise that striving to outperform the market isn't always a rational objective. Instead, an effective strategy is to attain a level of returns that exceeds the level of risk associated with investing. It's possible that at your risk tolerance level, your portfolio may never outperform the market in absolute terms, but it's crucial that it achieves or surpasses the level of returns compared to the market index, considering the same level of risk. In this context, relative return strategies play a crucial role in helping investors assess the effectiveness of their portfolio. These strategies help to understand how successful your portfolio is, given the same level of risk as the broad market, such as the S&P 500. Ultimately, an investor's goal should be not only to maximise absolute returns but also to achieve the best ratio of return to risk, ensuring stable and sustained capital growth in the long term. Find out about the prices for our services:
A personal investment strategy offers investors unique opportunities, distinct from strategies of absolute returns or simple investment in the broad S&P500 market. One of the main advantages is the individual customization of portfolio parameters and composition according to the goals and risk tolerance of each investor. Developing a personal strategy allows avoiding a "one-size-fits-all" approach and constructing an investment portfolio that best suits specific needs and objectives. Investors can select assets and sectors that reflect their unique preferences and strategic goals. For instance, an investor may choose to include diversified instruments, such as bonds, to mitigate overall risk, or assets with high growth potential, such as technological companies, to achieve aggressive financial goals. Additionally, a personal strategy may encompass aspects such as tax optimization, geographical diversification, and selecting specific sectors according to current economic trends and forecasts. This approach enables investors to maximize potential returns while minimizing risks. Thus, a personal investment strategy represents an individualized approach to asset management, based on the unique needs and goals of the investor, making it more effective and adaptive in the ever-changing world of financial markets. Consultations at the link below:
