We believe that investing is about doing a few simple things exceptionally well, in a highly disciplined way, and not letting emotions influence or have any part in the decisions that have to be made. We also undertake to deliver this process with clarity and transparancy so that you are fully informed and involved at every stage.
Through our research we understand what drives returns within investment portfolios. We therefore only advocate exposure to risk assets that have a proven track record of rewarding investors over the long-term.
Our core beliefs
These are the foundations which underpin our investment process.Â Without these core beliefs and assumptions we believe it is impossible to formulate a rational investment strategy that works for our clients under all market conditions.
Investing in developed and regulated markets rewards investors who stay the course. We recommend that our clients take a long-term view when investing and never over expose themselves to markets as this enables them to stay invested even in times of market stress.
Once our clients follow this structured and disciplined approach to investing they tend to avoid many of the ‘Investment Biases‘ which can cause many of us to act irrationally. Our role is to guide our clients through this process.
Risk and Reward
Risk and Reward are highly correlated to each other. It may sound obvious but it is something that many investors tend to ignore. At Smart Finance we will provide you with a thorough understanding of risk and more importantly the different types of risk that exists. This will enable you to feel more comfortable about your investment choices and to avoid mistakes you may have made in the past.
Diversification is simply not putting all your eggs in the one basket which in turn reduces risk and uncertainty. Diversification is always recommended as it can help to limit losses in times of market volatility and reduce fluctuations of investment returns without sacrificing too much of the potential gains.
Portfolio structure as a driver of investment returns
At Smart Finance we recommend that our clients use, where possible, a combination of passive and active investment strategies. This ensures that our clients receive the best value possible for the level of risk taken and the return achieved.