Investments differ from savings in that they have a level of risk. Risk is another word for volatility or how much it may go up and down. The ultimate aim of investing is to make money. More volatile investments generally make more money over time but the ride is usually bumpy. Lower risk investments tend to not to go up and down in value as much but do not tend to make as much money over time.
With so many investments out there and with so many commentators expressing a different opinion, how do you know where to invest? Past performance is no guide of future returns, so at ARM Associates, we do not even try to predict the future. There are some basic rules of investing that evidence shows increase the returns over time. Some are basic rules, such as no putting all your eggs in one basket. Others are more scientific, like using the relationships between different investments (correlation) to help to reduce the risk.
We use "Modern Portfolio Theory", originally designed by Nobel Peace Prize winner, Harry Markowitz, to help to create a "balanced portfolio" for clients. All of our portfolios are bespoke and tailored to your individual needs. Your portfolio can be used to grow your money, provide you an income or both. Tax efficiency sits beside everything that we do and any portfolio will try to minimise the tax that you pay. |
