5 Keys To Successful Investment Portfolio Management

Posted on November 25, 2019December 8, 2023 by Valuefy

1. Make your bets on companies whose business model you understand

It’s always essential to completely understand what you’ve invested in rather than invest in every shiny opportunity that presents itself. There may be a lot of noise and cry in the market about the next big thing, one day it may be Bitcoin, while the next it may be Ripple or even weed stocks. However, it is essential that you keep your wits about you while investing. Look at strong metrics such as per capita product consumption, past returns, future projections, input costs and margins before making any kind of investment. You must be confident enough to forecast different projections for the firm based on your understanding and confidence level in the market. When you ignore this basic tenet and invest in companies or channels that you don’t understand, you stand a high possibility of watching your investment go bust. Avoid being seduced by the new opportunity in the block, the ‘boring’ groundwork and research is where the real gold (scope for building wealth in the long term) lies. The top billionaires in the investment space, such as Warren Buffet, advocate this philosophy. It’s all about being sure about what you know and betting on that.

2. Always hedge your bets

There’s always an endowment bias when it comes to investment decisions. Investors often make the habit of making predictions about stock performance without considering all the kinds of risk factors. Hence, we are often overly optimistic about our prospects which may backfire in our face. It’s important to be conservative about the prospects of an investment. It helps if you have data and analytics helping you hedge your bets rather than relying on pure instinct. All speculation must have a strong backing in data and an appropriate distribution of asset allocation must be maintained between high exposure investments like stocks and low-risk debt funds.

3. Minimize Costs, Expenses, and Fees

Professionally managed firms and family offices may charge high fees for management and advisory fees. This can either be in the form of a percentage of assets or in the form of a flat fee/retainer. It’s even more dangerous if they earn income through commissions as their financial interests may be at odds with yours. This fee can heavily eat into your long term corpus generation in various ways due to the interest lost on the amount that would have otherwise compounded. Hence it’s better to go for a Robo Advisor or a wealth management firm that subsidises is management fee by providing Robo Advisory services rather than using a Human advisor for all client interaction. The cost-saving by the Wealth Management firm is transferred to the benefit of the investor.

4. Maintain your portfolio boundaries

Be very clear on what level of exposure you are comfortable with in terms of risk and what profits you will be happy with. If you have data and analytics driving your decisions, you can set up a flagging mechanism to raise a red flag whenever a trade hits an upper or a lower limit. Setting boundaries for your portfolio help you minimize the probability of a loss. It’s important to be opportunistic, but it’s also essential that you aren’t too greedy. A very diverse portfolio with an appropriate mix of funds from across industries will help you create a portfolio that performs well in a bull or bear market.

5.Leverage Technology

Nowadays, wealth management paradigm has shifted and investment managers are using technology to back their decision making. Wealth management software and platforms have emerged which use a combination of AI and Analytics to de-risk investments. Robo advisory services are now part and parcel of every Wealth Management firm’s offering. These services help firms crunch the numbers and make data-driven decisions about investing. Robo-advisors provide the right kind of recommendations and give a wealth of analytics and historical data to help guide investment choices. These technologies also take care of monotonous tasks such as asset reallocation, portfolio attribution, KYC, onboarding amongst others and provide great transparency to investors. This helps Wealth Managers free up a large portion of their time and dedicate it to providing excellent customer servicing.

Looking for Wealth Management software that can help your Wealth Management practice flourish? Contact us for a free demo

The Wealth Management Industry: Outlook 2020

Posted on August 23, 2019November 11, 2022 by Valuefy

As we complete two decades of this century, GenZ has entered their early adulthood and GenY, popularly known as Millennials, are close to being middle-aged. These are the people who grew up with the internet, they have their entire lives around it. And their love for the digital space seems to grow every year.

And these will be the people wealth managers will be serving in the coming years if they aren’t already.

The current industry veterans are from the pre-internet era and their methods are, traditional which has worked fine so far because they have been serving the clients who belonged to the same generation.

But the times are changing and this generation gap needs to be filled if they want to attract, and retain, customers from this generation and the one after. To do that, wealth managers need to adapt to the latest technologies and methods in the wealth management space too.

So, here’s a non-exhaustive list of industry trends that will be seen come 2020.

The Number of FinTech Companies will Rise

FinTech companies with their innovative and technology-oriented approach have been disrupting the industry with solutions like data analytics, predictive analysis through Artificial Intelligence and Machine Learning. There will be a rise in the number of these companies as better, more sophisticated solutions emerge.

Interactions with Clients will Increase, Less in Person

As the industry moves towards a digitalized ecosystem, the number of interactions between the wealth managers and their clients will increase significantly. Only, these would be more in the form of textual or visual interactions rather than in-person meetings. There will still be meetings but far less. The new generation of affluent likes to stay updated with everything all the time which means they would want to have daily updates and reports.

The Need for Customizations will Increase

Technology has enabled customizable solutions for wealth management. FinTech is playing a huge role in making this option available to the wealth managers. With these customizations, every client could be presented with a portfolio or wealth plan tailored to their needs. This would need in-depth profiling of the clients and prospects to propose the most relevant customization to them.

These emerging technological trends would mean that wealth managers would need to find relevant technological partnerships with FinTech companies to prepare themselves for these challenges.

Valuefy is a FinTech company that enables wealth managers with technological solutions to ensure the digitalization of their processes and empower them with comprehensive analytics, Portfolio Management solutions, reporting, and relationship management.

Valuefy made it to the WealthTech100. Have you Heard it yet?

Posted on May 12, 2019October 20, 2023 by Valuefy

Valuefy is pleased to announce that we are now recognized worldwide as a WealthTech100 company. We are among the few companies from Asia to be featured in the list of the 100 most influential innovators in the FinTech Industry.

The list was put together by FinTech Global’s panel of industry experts and analysts. They selected the top 100 from an assemblage of 1000 participating companies based on the significance of the problem being solved by the company, the growth of the company, innovation in technology and the potential efficiency increase.

All these companies bring smart solutions for WealthTech landscape spanning in areas of client management, investment planning, portfolio management, Digital Advice, Risk and Compliance. We have brought in solutions like WealthFy and ValueAT to help people manage Digital Wealth better. Valuefy is Serving marquee clients by empowering them with Investment Analytics, Digital Wealth and High touch Advisory Solutions.

Why This List?

This list is important for many people. Many FinTech companies cater to different stages of Wealth Management or Investment management Value chain. It will help the revered investors and senior level executives in choosing the right FinTech platform for their specific requirements.

We want to enable them with better Advisory & Client engagement by addressing the core challenges and providing effective solutions for the same.

Valuefy solutions reflect on our Vision of “bettering the way, the world invest” by delivering multiple benefits across the value chain of investing. From simplification, Analytics, to use of Artificial intelligence, our core is to make Wealth Management “better” in general.

Where We go From Here

At Valuefy, we believe in moving forward. We have always been huge fans of making progress where it’s due and now that we have reached an important milestone, we are aiming at another.

We are honored to be a part of this esteemed group of companies and look forward to creating more innovative solutions to WealthTech’s biggest problems. For us, the best is yet to come, what about you?