Informed Choice chartered financial planner Martin Bamford was featured in an investment supplement in The Times yesterday, talking about how to minimise investment risk.
Risk management is a very important part of what we do for our clients.
Our three core goals are to enable our clients to build, manage and protect their wealth. Risk management features in each of these three stages.
Commenting in The Times, Martin explained that it is important to look at the risk across the whole portfolio rather than focusing on one fund at a time.
“The easiest way to do this is to look at the underlying asset allocation of all of your investment funds. This tells you how much is invested in each broad type of investment, such as fixed interest or equities.”
Here at Informed Choice, we use specialist software which enables us to look across an entire portfolio and carry out a deep analysis of the underlying asset allocation.
This analysis forms a central part of our advisory and review reports for clients. It helps our clients to understand the degree of risk they are taking with their portfolios and also the potential returns, as the two factors are closely linked.
Photo credit: Flickr/Martin Bamford
