Classical investment approaches focus on stock picking and market timing to drive returns. This approach exposes investors to unnecessary idiosyncratic risk. Alternatively, modern finance illustrates that an investor’s asset allocation is the major determinant of portfolio performance. Pure uses the science of investing to structure and execute client portfolios. Pure Financial’s investment strategy for portfolio asset management is based on decades of industry research.
What is Asset Allocation?
Asset allocation is the combination of asset classes within your portfolio that considers the client’s overall long term goals, time frame, and risk tolerance. It aims to implement an investment strategy which will balance risk and return by adjusting the percentage of each asset in your portfolio accordingly.
Investment portfolio allocation is one of the most critical decisions an investor has to make. Asset allocation will determine which asset classes your money is being invested in, and how much risk is associated with your portfolio. Each investor will have their own unique asset allocation strategy based on their financial situation. In order for an investor to achieve their financial goals, they need to consider fixed income, equities, and personal cash flow in their asset allocation strategy.
At Pure Financial, we use an individualized approach for asset allocation depending on each client’s financial goals. To help determine the most appropriate asset allocation plan, our financial advisors will work with clients to understand their financial objectives. Depending on each individual’s situation, we choose a plan of action that is aligned with their goals.
To learn more about our asset portfolio management at Pure, give us a call today. Our experienced advisors will help you develop an effective allocation strategy so you can get the most out of your investments.