When an investor decides to invest in stocks or investment funds, they choose the shares of a lot of listed companies. Those investments usually have different levels of risks and varying levels of returns. Since there are several different choices of investments, the chances are higher for the investor to succeed if an investor had a specific strategy to choose between these investments. Investors can have an even better chance if they adopted several strategies so each one can fit a specific economic situation. For example, the investor can use a specific strategy when the interest rate is increased and another one when it is decreased. Any general investment strategy has several requests. First: how an investor should distribute their investment assets on the different investment channels such as shares, precious stones or real estate. Second: the strategy should include the standards to buy the investments and another for the periods where the investor wants to keep those investments. Last: the investor should specify, their strategy, and the appropriate level of risk in every investment of those investments.
AL-Yoser Investment gives their Client a complete guide of Investment where the investor can specify which of the investment strategies fits their personality, circumstances and investment goals. One of these strategies might, for example, include a method that focuses on acquiring growth stocks (shares with growing capital). The investor might also adopt another strategy that aims to preserve the capital by focusing on low-risk investments. No matter what strategy the investor chooses, it should be consistent with their investment objectives such as retirement, buying a house, paying tuition, etc…
Giving the strategy time
Once the investor specifies his asset allocation strategy, AL-Yoser provides full-time work. It is important for us to commit to the plans for them to work. It might be even better to handle client asset allocation strategy for a full economic cycle keeping in mind to try to be flexible to change when other good investment opportunities arise.
Asset Diversification
Diversification, as asset allocation, is an important component in managing an investment portfolio. Asset allocation and diversification have similar goals and strategies which are allocating the money to different sectors and lower investment risks. Asset allocation is applied in allocating the capital in different investment assets such as stocks or liquid cash whereas diversification means buying a number of investments within one category of assets. For example, if your investments had stocks in them, you should diversify your shares or investment portfolios to achieve enough diversification.
Diversification, as asset allocation, is an important component in managing an investment portfolio. Asset allocation and diversification have similar goals and strategies which are allocating the money to different sectors and lower investment risks. Asset allocation is applied in allocating the capital in different investment assets such as stocks or liquid cash whereas diversification means buying several investments within one category of assets. For example, if your investments had stocks in them, you should diversify your shares or investment portfolios to achieve enough diversification.
AL-Yoser Investment L.L.C Assets Diversification helps to eliminate high risks from investment decisions. It is known that the increased demand for any shares cannot be predicted which makes asset allocation important. Usually, investors cannot identify the companies with good management from the ones with weak management or pinpoint the companies that could have good performance in specific circumstances from those who have poor performance in the same circumstances. By having an AL-Yoser Investment diversified investment portfolio, the investment in a good company would overcome the bad consequences for the other weak companies.
Some investors prefer to diversify their investments based on specific indicators such as choosing secondary shares which represent smaller categories within a specific category. For example: to measure the company’s size, the shares can be split into smaller groups depending on the total market values. In general, variations in the market values reflect the differences in the expected growth, the price volatility and the possibility of surviving the economic setback. Usually, the performance of small, medium and large shares varies periodically where the performance of each category is good in one period and weak in another. Apart from the size of the market values, there are other ways to sort the secondary shares categories including the type of activity, sector, and evaluation.
Risk Management By AL-Yoser Investment L.L.C
There are a lot of factors that could cause investment risk. The most popular is volatility where investment prices are volatile to high and low levels without warning. This means that the price might go to less than the price the buyer paid to get it. The problem with volatility is that it cannot be predicted nor its effects on investment Here, We AL-Yoser Investment forecast the Risk and Analyze the Market Condition and Manage the Investment with Mutal understanding with the potential investors.
Investment Portfolio Performance Follow-up
AL-Yoser Investment Follow-up on investment portfolios is considered important because it helps in making the necessary changes to the portfolio. For example, if some specific shares affected the performance of the portfolio and lowered it or increased the risk on it with more than what the investor is willing to take; he can dump them and invest in others. Also if the portfolio did not achieve the minimum of the return the investor wanted, we can partially or fully redistribute the investment assets.
The rules to follow up on the investment portfolio start with the investor following up on the return on investment for every group of companies that belong to a specific sector and comparing it with the sector index and then specifying the average for the whole portfolio. If the investor has investment units in an investment portfolio through AL-Yoser Investment L.L.C then we are the one who prepares the report on the portfolio’s returns. In case the investor owns shares or securities through an account with AL-Yoser Investment then we calculate the returns for the investor.