Investing starts with knowing yourself
The average Swiss investor can access millions of investment opportunities through financial apps.
Not all of these opportunities are suitable for every investor: Some are too risky, some go against moral and ethical values, and some require locking in capital for a long period.
That’s why understanding the investor’s profile is crucial before making suggestions. Through targeted questions, the process narrows down investment possibilities to those relevant for the individual.
That’s exactly what our investor onboarding does
Investors are categorised into three sections:
- Investment history
- Personal preference
- Strategy
This process gathers information about the investor’s experience, financial situation, objectives, and risk tolerance. It leverages economic theories, including those awarded Nobel prizes, to determine the investor’s risk profile and “utility function” — a mathematical representation of how losses and gains are perceived.
In understanding preferences, it’s determined what motivates the investor and where they believe their money could make the most significant difference. This includes aligning with their world view and avoiding asset classes they’re already invested in.
Finally, a partnership is formed to define the investment strategy. Based on the investor’s profile and preferences, an optimal mix of asset classes is presented, which can be personalised. The key information about the investor is summarised, accessible at any time, underscoring that self-knowledge is the foundation of any investment journey.
The Wealth Management Team is available for further inquiries about the investor onboarding process and its methodology.
