INVESTMENT PORTFOLIO SELF-MANAGEMENT: HIDDEN DANGERS

While studying the ways people manage their own investments – arty has found some common problems with the independent approach to investing:

  • Risk is usually higher. People often take more risk by managing their investments themselves, without the help of professionals.
  • More time-consuming. Even taking a simple approach to managing your portfolio often requires time, education, vigilance, and discipline. Assigning these tasks to someone else is an excellent way to avoid these stresses.
  • Emotional discipline is a must. When you watch your portfolio go negative, be it every minute, every day, or every month, ask yourself whether you can just sit back and do nothing? Research has shown retail investors are more likely to sell once the market has dipped, reducing overall performance.
  • Over-confidence. People tend to underestimate the complexity of investing. There are so many factors to consider and so little time, people tend to choose one theme and stick to it. There is a good chance you have the tools you need to make great investments, but make sure you have done the required analysis before you start investing big money.

Self-investing alternatives

Self-investing carries two dangers. The danger of inaction: getting caught up in the Google search cycle, reading books and articles, and being convinced you’re not ready. Or you can “jump into battle” unprepared, making mistakes that cost you money.

If you decide not to manage your investments yourself, you can try investing using a portfolio advisor or asset manager, particularly strategies based on quantitative investment methods.

What are portfolio advisers?

A portfolio adviser is an automated investment platform that puts your funds into one of several pre-built portfolios based on your personal preference or an assessment of your needs. Portfolios are usually made up of blue-chip stocks, ETFs and mutual funds in addition to bonds and other diversification instruments.

Portfolio advisors are designed to offer everyday investors access to sophisticated technology and professional research that can help them earn better risk-adjusted returns than they are likely to achieve on their own.

Quantitative investment strategies

Quantitative investment strategies take a different approach. They seek to generate uncorrelated returns by applying mathematical research and analysis to financial markets.

The strategies can improve a portfolio by increasing diversification and therefore reduce risk or volatility. arty uses the quantitative strategy ART 3x. This is a managed fund that seeks to profit by modelling futures prices and applies an algorithm that trades automatically. Allocating a small proportion of the portfolio to this strategy will increases the overall risk-adjusted return expectation.

Investment portfolio management with arty:

  • arty uses AI and big data to generate profit in any market situation,
  • arty helps you to earn up to 25% annual returns,
  • arty offers a selection of professional portfolios depending on your risk profile,
  • arty will help you combine ETFs, which are great for reducing risk and creating stable, reliable returns.

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