Manage Risk: Risk is best managed through a portfolio of
thousands of securities that is broadly diversified and passively
managed. The majority of investors should have portfolios with
both equities and fixed income securities.
Markets Work: Markets efficiently reward investors for
supplying capital. The reward is based on the risk taken—
risk and return are related. Over the long term, Wall Street
research offers investors no additional value.
Customised Portfolios: One size does not fit all. Investment
portfolios should be matched to an investor’s individual goals
and risk tolerance based on six factors: time horizon, net worth,
savings rate, risk attitude, investment knowledge and money
Long Term: Portfolios that incorporate equities should focus
on the long term to allow for maximum appreciation and avoid
the pitfalls of market timing.
Regular Consultation: Investors should always work from a
written investment policy statement. Regular, in-depth
consultations between advisors and clients will help advisors
provide sound investment advice