Asset Allocation

Exactly which product or type of investment you choose to invest in can be as important as who you invest your money with. Typical examples of different investment types include cash, equities, bonds, property and natural resources among others. There are, of course, many sub-sections within these main categories and collectively they are known as “asset classes”.

It is widely agreed that the majority of any given portfolios return is due to how much exposure there is to each asset class at any given time. Research has shown that it is possible to increase your expected return while maintaining the same risk level, or keep the same expected return while reducing your risk, by using a disciplined asset allocation process. Diversification is the key element of asset allocation; spreading your investment across different types of funds or securities in order to reduce risk. An efficient well diversified portfolio aims to stay within an acceptable level of risk for the client and should give the highest possible return given that level of risk.

As our Jigsaw advisers do not have a crystal ball to see into the future and predict market movements we wholeheartedly embrace this methodology. We therefore create and agree an appropriate asset allocation for each client, based on their own circumstances and aspirations, prior to making any portfolio recommendations.

Due consideration is also given to your attitude to risk, investment term and overall financial circumstances but once we have agreed your ideal asset allocation we then move to the next step in the Investment Process, selecting the funds and portfolio creation.

If you would like additional information on this process, or the importance of asset allocation, please use the contact us feature or call 02380-004444.

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