Work in the securities market should, first of all, start with the definition of your personal risk attitude and specifying your individual investment goal.
Of course, the main goal is profit. But do not forget that any investment activity is side by side with losses instead of making profit. That is why your investment goal (investment expectations) should contain a certain compromise between the desire to maximize profit, on the one hand, and efforts to ensure an all-round protection from risks for your funds, on the other hand. The search for such a compromise is step one towards success.
Step two is choosing the investment strategy. Grandis Capital offers its Clients three classical long-term strategies and two middle-term option strategies helping to find a balance between risk and yield depending on your investment goal. For more information about our strategies, follow this link.
Once decided on the structure of your future investment portfolio, you go to the next one, step three, which is signing of an investment policy statement. The investment policy statement lists assets that the management company is going to invest the Client’s funds in and the investment horizon (term of investment). And this is not just good intentions, but a commitment of the company to the investor. By signing an investment policy statement, you agree to this very set of instruments in your portfolio and investment strategy. Moreover, in decision-making, you have to realize the risk exposure you choose, because, in the global practice, it is the investor who always bears the main risks.
Step four is cash flow planning (inflows and withdrawals). It is over when an asset management agreement is signed. When we draw up an agreement, we take into consideration all the aspects, including tax treatment. For more information about the agreement and other documents required to open an account, please contact our Client Relations!
However, funds transfer does not end our cooperation. Step five is monitoring of the investment portfolio status, regular updates on the changes of its structure and the actions taken by the portfolio manager. You will be receiving a report of the management company on a weekly basis.