“An investment in knowledge pays the best interest” Benjamin Franklin
Diversification is Key
Diversification is a technique that can be summed up by the timeless adage ”don’t put all your eggs in one basket”. By selecting the right investment opportunities, this can help limit the level of investment losses and reduce the fluctuations of investment returns without sacrificing too much potential gain.
Investment Risks and Returns Are Related
The statement that investment Risk and Returns are related may sound obvious bit its’s something that many of us investors have ignored at our peril in the past. All investment opportunities carry some degree of risk, even cash. At MMPI, one of our goals is to educate clients on the different types of risk that exist when it comes to investing and this hopefully avoid mistakes of the past.
Capital markets Work
When it comes to investing it is easy to follow the crowd but rare to outperform by chasing trends. We are committed to long term investing and remaining invested even in times of market stress. Investment markets throughout the world have a history of rewarding investors who stay the course. When it comes to building investment portfolios, that’s why it’s so important to have a well-defined, methodical approach to making investment decisions. If investors follow a structured and disciplined approach to investing, they will avoid many of the biases which cause them to act in irrational ways. Our role at MMPI is to guide you through this process.
We know that costs have a significant effect on a portfolios long term performance, that what at MMPI, we implement a combination of active and passive strategies in our portfolios to ensure our clients are getting the best value possible for the chosen level of risk and return. Based on statistical information, two out of every three active managers will underperform the market, so why have a purely active portfolio? Evidence suggests that active managers can add vale in small, mid cap and emerging markets while passive strategies have a proven more effective in developed markets such as US and Europe.