When working with a firm of Independent Financial Planners, it’s important to understand their approach to the delivery of investment advice.
In this short video, we describe our Investment Philosophy here at Informed Choice.
We believe that investment success comes from the consistent application of a robust process.
Following a predefined process allows our clients to take the emotion out of investing decisions. As a firm, we consistently apply a six-stage investment advice process each and every time, to ensure the delivery of suitable advice.
The outcome of this advice process is tailored to meet individual client objectives, but the process we follow is always the same.
We believe that diversification using mainstream asset classes can reduce risk without destroying returns.
It’s the relationship between cash, fixed interest securities, equity and property which determines risk levels in a portfolio and also potential returns. Blending these asset types together allows us to create and maintain efficient portfolios to meet different investor goals.
We believe the bulk of long-term returns come from an asset allocation strategy.
It’s this asset allocation, and not stock selection or market timing, that is the biggest factor in determining portfolio returns. This is where we focus our attention when delivering investment advice.
We believe it’s possible to add extra value through tactical asset allocation decisions and fund selection.
Strategic asset allocation is key, but other factors can play a role in delivering additional value to investors. Any tactical decisions we make are evidence based and take place within defined risk parameters.
We believe investment decisions should relate to financial planning objectives.
For this reason, we never make investment recommendations without first putting in place a comprehensive financial plan. Understanding financial goals helps inform important decisions about how much risk needs to be taken
We believe trying to time the market is a strategy doomed for failure.
Investment markets often experience periods of volatility and can sometimes look expensive based on historic valuations. We believe that trying to time market entry decisions is a dangerous strategy as the biggest gains tend to happen quickly and are impossible to accurately predict.
We believe the ‘best’ funds display consistent risk-adjusted returns combined with low charges.
Because strategic asset allocation is the most important element of portfolio construction, choosing suitable funds means identifying those funds which have the greatest potential to deliver consistent risk-adjusted returns combined with low costs.
We believe there might be surprises just around the corner, but history informs the most likely long-term outcome.
Market events are often a surprise at the time they happen, later rationalised with the benefit of hindsight. Major financial events tend to have minimal impact on the long-term performance of a well diversified portfolio.
We believe active management and passive strategies can both play a valuable role.
There is a role for active and passive funds within a well managed investment portfolio. Rather than take an evangelical view of one option over the other, we appreciate that there are strong arguments for both approaches and accordingly we include both strategies in the portfolios we recommend.
We believe investors should know and understand the reasons for investing in every part of their portfolio.
Investing can be complex. We believe in keeping things as simple as possible.
We want every client to understand why we are making recommendations and how their portfolio is constructed to meet their own financial objectives. This means avoiding the use of overly complex investment products.
If you’ve worked hard to accumulate wealth, you want to make sure it’s invested to meet your chosen goals.
Our Independent Financial Planners help remove stress about money for people in Cranleigh and Petersfield by offering a clear explanation of your choices and options.
Do get in touch to find out more about the Informed Choice approach.
