Investment principles

Efficient risk-return ratio requires diversification

It is often very difficult to choose the best individual investment instrument in advance, and over time, constant switching from one instrument to another is more detrimental than systematic planning.

In our view, correct asset allocation and spreading the investment instruments is the best way for the client to manage the risks relating to the portfolio and achieve the overall investment goals.

Financial plan based on model portfolio

Our investment recommendations are based on model portfolios representing different combinations of the expected return and risks. The risk level has been defined according to the expected minimum return, and the investments are spread across different asset classes as well as within each asset class. When the structure is diversified, the probability of receiving the minimum return or less decreases as the investment period lengthens.

Our clients strongly favour Nordic companies in their equity investments, which we have taken into account in our investment advice. Consequently the proportion of Finnish shares is 30% and the rest of the equity investments are diversified globally.