Active Investment Management
YOUR FRIENDLY NEIGHBOURHOOD CHARTERED INVESTMENT MANAGER
Investment Philosophy
Our investment Philosophy is deeply focused on action oriented strategies that cut across;
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This entails the ratio of equities to fixed income in a portfolio. A well carried out asset allocation is crucial to managing risk and achieving balanced returns. Equities include Stocks, Exchange Traded Funds (ETFs), mutual Funds while Fixed income are Bonds. Our Asset allocation is carried out in a way that it aligns with an investor's financial goals, risk tolerance and time horizon. It is a key element of portfolio management and is often regarded as one of the most important factors in determining the overall risk and return of our clients' investment portfolio.
We adopt a tactical which is a more active approach that involves making short-term adjustments to asset mix in response to the volatile market conditions and economic forecasts as well as a strategic asset allocation which involves setting long-term targets for various asset classes based on an investor's financial goals.
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Active management is a center of focus in my investment strategy. I actively make well guided decisions after critical analysis about the next best transactions that will enable my clients' portfolios perform better towards the set benchmark. My approach contrast passive management as I am more committed hence engaged with making changes to the assets in their individual portfolios following a timeline and a set strategy. This results in a portfolio growth and safeguards clients from economic meltdowns. ​
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Asset Allocations
Active Management
Risk Tolerance
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Risk Tolerance is the investor's ability and willingness to endure losses in their investment portfolio. It is a crucial concept because it helps determine the appropriate investment strategy, asset allocation, and the types of securities an investor should buy.
Some factors that influence Risk Tolerance include:
1. Financial Situation of a Client
Investors with a higher incomes and substantial savings or assets typically have a higher risk tolerance because they can afford to bear more significant losses without affecting their financial stability.
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2. Financial Goals
Short-term goals like saving for a mortgage, wedding etc. usually require low risks investments while long-term goals like retirement savings are more suitable for higher risk investments.
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3. Age
A client's age is very significant in determining their risk tolerance as older clients do not require very risky investments compared to younger clients that still have a lot to achieve financially ahead of them.
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4.Investment Experience
Experienced investors may have a better understanding of market risks and in most cases have overtime developed a higher tolerance for risk when compared to new investors who in most cases have a low tolerance as they may not be well exposed to risks.
Technical Analysis
I carry out technical analysis to evaluate and forecast the future price movements of financial assets by assessing their historical price data, trading volumes etc. I am effective in this process because every asset I advice my clients about first undergoes a fundamental analysis where the company's finances, earnings, and economic factors are understudied before delving into the technical analysis where price trends and market behaviors are studied.
Timing
Timing is an essential aspect of my investment strategy as it involves making investment decisions based on predictions or assessments of market movements. The idea is to buy securities when prices are low and sell them when prices are high to maximize profits. While the concept may seem straightforward, timing the market effectively is notoriously difficult due to the high volatility of the stock markets. Timing can be challenging without due expertise due to the sheer complexity of factors that drive market movements. A slight mistime in trades can lead to a significant loss or missed opportunities.