What is the money being invested for? Downpayment, retirement planning, emergency savings? The purpose of the investment is a key indicator of the time the money will be invested for, and must be taken into account when choosing an appropriate investment for any client.
Any investment carries a level of risk, and it is important to understand what each client's risk profile is. Walking through a process including real life scenarios, will identify the client's capacity and natural tolerance of investment risk. Every client is different, and this process and discussion is crucial when choosing investments.
Investments may be purchased in a variety of series, accounts, pricing structures etc. This is where we discuss what type of investment and in what type of account is most advantageous to the purpose of the investment is discussed.
Based on the above, an allocation strategy can be developed. This strategy includes what asset classes and account types are to be used as well as how much of the investment should be allocated to each.
Investments are then screened to identify options that meet all of the considerations above. Investments that meet those considerations are then further screened in order to mitigate further investment risk. Risks that could affect an investor's long term return include but are not limited to the following considerations: environmental; social; governance; currency; pricing; consistency of investment mandate; plus other factors that are deemed to be a factor in the specific investment decision.
Available investments are screened using 3rd party research from Morningstar.
Investment Selection and Review
Upon completion of all of the above, a final investment, or portfolio of investments, is then put in place. This is then reviewed on a regular basis to ensure that the investment(s) is still appropriate for the client and their needs.