Retail Clients

Retail Clients

Retail Strategy

The quality of our investment consultative service depends on our information and knowledge on investments, beginning with the risk-return relationship with the clients and to seek profits through measurable techniques.

Additionally, we focus on offering active interaction with the clients, in contrast to various other investment advisory companies with a one-way style of dispatching information.

Most importantly, we put an emphasis on letting the clients understand the background as to why retail investors make typical mistakes in their investments. Based on such reviews, we take the time with investors to have a comprehensive discussion to review the background of investments and to understand the thoughts on both sides. After this stage, we move on to the process of confirming the investment strategy (risk tolerance and returns target) and start our investment advisory journey with the clients. Needless to say, we constantly review the investment strategy depending on the clients’ situation.

Throughout the experience of deciding on investment strategy (risk tolerance and return target), we make the most suitable choices in selecting the ideal allocation of resources. In the event of an international multi-asset fund with investment into many international markets and products, it is significant that around 70 % of successful investments depends on a choice asset allocation stratagem. Although this is informing us how to produce the most considerable investment choices, almost all of retail investors have a tendency to understate the significance of this point.

We provide an investment advisory service to deal with the trading of listed stocks, with which most retail investors are familiar. In this case, we provide investment advisory services so as to attain the anticipated returns equivalent to the risks taken, showing the easy-to-follow maths (never in complex terms).

Hereby, we look at the following examples of typical mistakes by retail investors.

Retail Clients
  • Investors do not think that they will have a loss as long as they do not sell the shares and the loss becomes apparent. Even though they understand this point, most retail investors are not looking at the reality and they keep on holding shares which are making a loss.
  • The 'salt-cured' stocks simply mean that investors are holding assets, the value of which is lower than the acquired price. In other words, it is as if we invest again the same amount of money, based on the market value into the same stock. We have to find out in a rational manner, whether the current holdings are the most attractive investment choice compared with other stocks.
  • Another error which we can frequently observe is that retail investors have a tendency to take unnecessary risks. As a consequence of this, they often tend to end up with the 'salt-cured' stock and rue their investment simply because they do not understand the quantity of risk which they are taking.
  • Moreover, it is not always the case but retail investors tend to trade more than is necessary. They have to endure the cost and expense as they will have to pay commission and market spread for every trade.
  • Additionally, in a lot of cases it could be said that the retail investors use options trading incorrectly.