This page has an average rating of %r out of 5 stars based on a total of %t ratings
Ratings (%t)
Reading Time 3 Minutes Reading Time 3 Minutes
Created on 19.06.2019

Put it simply, please! Investment strategy

Is there an investment strategy which has proved particularly effective, and if so, how does it work? Adrian Merz, Head of the Customer Zone at the Berne branch of PostFinance, provides the answer in 45 seconds.

Great job, Adrian. If you’d like to read more about the topic of investment strategy at your leisure, you can find a detailed explanation here:

The most important thing about an investment strategy is that it should be tailored precisely to the investor’s needs, situation in life and goals. First of all, an investor profile is created which is based on the investor’s risk appetite and risk capacity. A more in-depth explanation is provided by Sokol Maliqi, Head of the Customer Zone at the PostFinance branch in Winterthur, in the article “Put it simply, please! Investor profile“.

Ensuring their portfolio is well diversified is extremely important for all investors. You can read exactly how that works in the article “Diversification –how it works“.

However, there is a strategy that has proved particularly effective and that initially suits many investors: the “core/satellite strategy”. It may sound complicated, but it is actually very straightforward. With the core/satellite strategy, investors put between 80% and 100% of their investment assets into a core investment. This may be an asset allocation fund, for example. Investors are well diversified with this fund because it invests in a wide range of different investments. They can then put the remaining 20% into investments which are of particular interest to them. For example, anyone wishing to invest in sustainable companies or who is particularly interested in precious metals or companies from emerging countries can do so with the 20% of the investment assets mentioned.

This produces a good mix of a solid investment in line with the investment strategy where investors have the flexibility to use the remainder to purchase their favourite securities.

More on the “core-satellite strategy” can be found in the article “What is the core-satellite strategy?“. Further information on asset allocation funds can be found in the article “Asset allocation funds – the right strategy for every need”.

You can rate this page from one to five stars. Five stars is the best rating.
Ratings (%t)

This might interest you too