4 years ago

Why asset allocation matters: 4 steps to a successful investment portfolio

By Diego Wuergler, Chartered Financial Analyst (CFA), Head of Investment Advisory, Bank Julius Baer If investment is a journey, then asset allocation is its guiding star. Here are four steps towards building an investment portfolio that suits your needs. Getting your investment portfolio right requires getting your asset allocation right. When it comes to returns, 80 per cent of the result can be attributed to asset allocation yet many investors don’t realise this. Whether you’ve recently inherited funds, turned a cash profit by downsizing or simply decided to start structuring your wealth, it pays to work through the four steps below. Step one: Map-out your game planWhat would you like to achieve? And by when? No-one invests just for the sake of it – there’s always an expectation driving our investment behavior. But we only know if our expectations are met when we truly understand them. This requires taking time to specify your needs in detail: what are the exact financial and wealth goals you wish to achieve? This can be more wide-ranging than we initially think, spreading past desired profit levels to include philanthropic or entrepreneurial goals, as well as the fulfillment of dreams such as home ownership, renovation or travel. In determining your game plan, […]