Portfolio Construction
 
Portfolio Construction is all about investing in a range of funds that work together to create an investment solution for investors. Building a portfolio involves understanding the way various types of investments work, and combining them to address your personal investment objectives and factors such as attitude to risk the investment and the expected life of the investment.
 
When building an investment portfolio there are two very important considerations.
 
  • The first is asset allocation, which is concerned with how an investment is spread across different asset types and regions.
  • The second is fund selection, which is concerned with the choice of fund managers and funds to represent each of the chosen asset classes and sectors.
Both of these considerations are important, although academic studies have consistently shown that in the medium to long term, asset allocation usually has a much larger impact on the variability of a portfolio's return.

To help in choosing a suitable asset allocation we use a Risk Profiling tool that helps identify your attitude to risk and therefore better identify a combination of investments to build a portfolio.

With such a vast number of investment funds to choose from, spanning the full range of asset classes and world markets it is easy to become confused when choosing which investments to make. It is even more difficult to choose the right combination of investment to potentially meet your investment goals.
 
Again to help narrow down this range we have a variety of tools that can easily highlight the various fund ratings and so weed out the below average performing funds.
 
Many private investors have built collections of funds over their investing lifetime. As markets have developed and investing styles come in and out of fashion, it is likely that the total portfolio may be too heavily invested in a particular asset class (e.g. equities), region (e.g. UK), sector (e.g. technology) or even a particular share which is present in every fund but to varying degrees. In other words, your combined portfolio may no longer meet your risk profile, needs or aspirations.
For Investment Planning we make recommendations based upon the Whole of Market.

The levels, bases and reliefs of taxation are subject to change.

The guidance provided within this website is subject to the UK regulatory regime and is, therefore, primarily targeted at consumers based in the UK. This site does not confer any form of personalised financial advice, should you wish to receive specific financial advice please contact us.

Watt Financial Solutions has now merged with Riverpark Investment & Financial Consultants Ltd,
which is authorised and regulated by the Financial Conduct Authority. 
Riverpark Investment & Financial Consultants Ltd is entered on the FCA register under reference 455480.
 
Donald Watt is Accredited by the Society of Later Life Advisers