Although many investors have an investing strategy in place, it likely does not allow for updates or the introduction of new, more profitable alternatives.
Most experienced investors have a clear, predetermined strategy for investing. Either they have developed it themselves or they have worked closely with a financial planner/broker to define their: risk tolerance, available funds for investment and other important criteria; such as return expectation and investment portfolio breakdown. Although this information is fundamental to the long term performance of their holdings, it likely does not allow for strategy updates that account for unforeseen changes in the market, or for the introduction of new and more profitable alternatives.
In a majority of instances, established investment advisers focus on the well-known traditional investments like stocks, bonds, mutual funds etc., and tend to not focus so much on investing in alternatives; as part of a client's long term strategy. I believe that this happens for many reasons. But, most often it is because of a lack of knowledge of the part of the broker/adviser, with regards to how the leading alternative investment vehicles/markets operate.
Given that many investment advisers are not experienced in investing in nontraditional investments, it is wise for investors to conduct their own research and develop their own, clear alternative investment strategy to satisfy their long-term financial plan. This is particularly important when you stop to consider that these types of investments tend to have different rules and regulations, depending on the investment type and market chosen. Even though emerging markets such as China and India have plenty of new and exciting opportunities, some of the requirements for investment are different in Asia than they are in Europe and other parts of the world.
Without the guidance of an experienced investment adviser/broker, private investors must conduct their own in-depth investment research to make themselves aware of the regulations that govern their investments. By taking the proper amount of time to set the record straight - with regards to any questions or concerns, investment-seekers can make an educated and confident decision about which investing opportunities are right for them. In doing so, they can make revisions to their existing investment holdings and introduce alternatives that will improve immediate and long term portfolio performance.
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