The ever-shifting changes in financial markets demand pro-active portfolio management rather than a reactive approach. However, investment strategies must also be tailored to your individual needs and ambitions. Here, we outline three different approaches commonly selected by investors to help you focus your financial plans for the new year.
Capital growth
Capital growth strategies are designed to provide long-term capital growth. As a result, generating income becomes a second consideration. These strategies involve investment in a diversified portfolio containing multiple asset classes, with allocation dependent on the investor’s risk profile.
Higher income
Using this option, the aim is to preserve capital while optimising a higher level of income and supplying moderate growth in the long term. However, portfolios and how assets are allocated is always governed by the risk tolerance of the investor.
Income and growth
Combining these strategies, wealth managers make a balanced investment ambition the main priority. The aim of this investment approach is to deliver a strong total return by proving the possibility of capital growth while generating income.
Ethical
Finally, ethical strategies allow investors to make socially responsible investments that support their personal morals and values. Strategies are focused on the wider effect of investing on the environment and society, while still generating financial returns for investors.
If you need expert help with portfolio management in Shropshire and Chester, we can help. Get a fresh perspective on your investments for the year ahead by calling Hartey Wealth Management today.
