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Assisting Clients In Making The Right Investment Decisions

When people think of getting returns on savings, it is either savings deposits, fixed deposits, or gold funds. Anything that fetches rewards is looked upon with great respect. Most people purchase assets and sell them when the price and time are right. However, no one blindly puts their money anywhere. A lot of research and study of the market is inevitable for people, who are seeking returns on investments. The investment process is quite complex. Moreover, there are various steps involved.

Steps In Any Investment Strategy

One needs to devise a strategy to invest and get the best rewards. It is thought to be a well-timed and informed process. Selecting and putting the money into the right avenues can set one apart from the rest.

  • Understanding The Client

As an advisor, one needs to understand the background of the client and his risk appetite. Asking the client his goals is an important part of the decision-making cycle. The portfolio management process comes into the picture here. The first step of the investment process will lead to fruitful results if done right.

  • Segregating allocation of funds

It comes next. An advisor can advise the client on different kinds of classes. No one should be putting all their money into one basket. That is what seasoned investors believed. New investors are often lost or confused, when it comes to investing in the right asset class. There are various classes of assets like securities, Equity, ETFs, and real estate, where one can invest. Here comes another parameter, domestic or foreign investments. The advisors generally make final decisions after studying the market demographics.

  • Portfolio Creation

It is the third step in this process. Selecting the proper strategy for portfolio creation is extremely important. There are two main types of strategy – active and passive. The active strategy aims at outperforming the market. Buying undervalued securities or short-selling overvalued securities comes under this umbrella term. A passive portfolio aims at generating returns equal to that of the market.

  • Asset Selection

It is an important step of the investment process, where the investor needs to select the type of asset. There are different sets of assets. And there are subsets as well. Take the example of Equity. Under Equity, there are different types of assets. There are several bonds to be chosen as well. The investment goals should be aligned with the investment policies.

  • Evaluation

 Performance evaluation is as necessary. This is the end of the process that determines success or failure. One has to measure the results against the benchmarks. Every investor is more concerned with this, more than anything else.


There are a variety of asset classes that are commonly invested in. They include liquid funds, index funds, debt funds, property, and metals. If one is not informed about the various facets of asset management, it is not possible to invest wisely. An individual must pick up a strategy to take maximum leverage. Keeping abreast of market movements is the way to go.

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