- Know your client: Ask about risk aversion and financial goals. The portfolio diversification should be based on the risk aversion and financial goals of a client.
- Know your funds: select the best suited funds for your client based on their risk/return profile. Managing cost of the funds, tax status can play an important role in the diversification.
- Spread your investments: Do not put all of your money into one security. Research different options (mutual funds, stocks, trusts and equities), and spread your wealth evenly.
- Take index and bond funds into consideration: Adding index and fixed-income funds to the portfolio can bring some wonderful long-term diversification to it, as they’re hedging your portfolio against volatility and uncertainty of the market.
Be sure to request your Portfolio Crash Test Demo below, which will help you explain and manage portfolio risk for any prospect or client. It is the only platform for advisors that is also used by top institutions to manage their risks.
Before I take any next step could you please give me the range of costs for your services?
Thank you.
Frederick S. Fox
Vice President
Merrill Lynch