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Risk
Tolerance
Different people are comfortable with different
levels of risk. Trusted Advisor believe that the most appropriate
portfolio for any investor is one that they will be disciplined enough
to stay with for the long term. A portfolio of funds needs to match
the risk tolerance of the customer in order to deliver a successful investment
experience.
Model
Portfolios
Trusted Advisor has created 10 model portfolios of institutional grade
asset class funds. These index portfolios are the most appropriate
long-term asset allocations for investing, and are divided among three
broad asset classes: fixed income (bonds), UK equities and International
equities. The equities are further divided by size and value (book-to-market
ratio).
Your Investment Plan will contain the most appropriate asset allocation
for your personal risk tolerance. For an explanation as to why asset
allocation is so important, please read the article
Why Investment
Policy Explains All, which essentially confirms that your asset
allocation of a portfolio of index funds explains 100% of your long term
expected risk and return.
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