Taking on 'Smart Risk' With a Multi-Asset Approach
In this low-interest rate environment, the biggest risk may be not taking any. Find out how multi-asset strategies that put "smart risk on autopilot" may be able to help investors reduce risks without missing out on returns.
Multi-asset strategies for outwitting oneself
Investors often react emotionally and irrationally, according to experts in behavioural finance. For example, investors often have limited visibility due to inadequate information. The window, or rather the window frame, through which they observe the world of investments is simply not big enough to provide a view of all the necessary information, investment alternatives or contradictory facts. In addition, they often exhibit a home bias – a preference for securities from companies in their own country. The result: they lack diversification and ignore better alternatives. Multi-asset strategies can help investors to outsmart themselves – easily and automatically.
Why taking on 'smart risk' is key
In this low-interest rate environment, we believe the biggest risk is not taking any risk at all. When making investment decisions, "smart risk" is crucial.
Multi-asset solutions can be considered an attractive form of investment because, thanks to the broad spectrum of investment opportunities and the flexible use of trends, investors can take advantage of numerous opportunities for returns worldwide whilst simultaneously achieving a balanced risk structure for their investments.
This is a form of “autopilot” that helps investors to reduce risks without foregoing opportunities for returns.
For more information, read Smart Risk with Multi-Asset Solutions.
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