Types of Portfolio and Policies

In wealth management, portfolios are typically constructed based on a client’s investment objectives, risk tolerance, and time horizon. There are several types of investment portfolios that wealth managers may recommend, including:

Aggressive Portfolio: An aggressive portfolio is designed for investors with a high-risk tolerance who are willing to accept high levels of volatility in pursuit of potentially high returns. This portfolio typically includes a high allocation to equities and alternative investments.

Balanced Portfolio: A balanced portfolio is designed to provide a balance between growth and income while also managing risk. This portfolio typically includes a mix of equities, fixed income securities, and alternative investments.

Conservative Portfolio: A conservative portfolio is designed for investors with a low-risk tolerance who prioritize capital preservation over growth. This portfolio typically includes a higher allocation to fixed income securities and cash and cash equivalents.

Income Portfolio: An income portfolio is designed to provide a steady stream of income to investors through fixed income securities, dividend-paying stocks, and other income-generating investments.

In addition to the types of portfolios, wealth managers may recommend various investment policies to guide the management of a client’s portfolio. Some of the common investment policies include:

Passive Investing: Passive investing involves investing in low-cost index funds or exchange-traded funds (ETFs) that track a market index. The goal is to match the performance of the market rather than outperform it.

Active Investing: Active investing involves actively selecting and managing individual securities in an attempt to outperform the market. This approach requires a higher level of expertise and research to identify mispricings or undervalued securities.

Value Investing: Value investing involves selecting individual securities that are undervalued by the market and holding them for the long term. The goal is to realize a profit when the market eventually recognizes the true value of the security. Growth Investing: Growth investing involves selecting individual securities with strong growth potential and holding them for the long term. The goal is to realize a profit from the appreciation in the value of the security over time.

• Objectives of Investment
• Investment Time Horizon
• Expected Return and Risks
• Investment Recommendation
• Financial Recommendation
• Personal Investment Portfolio
• Retirement Portfolio
• Capital Need Analysis