Investment Strategy In Risky Assets

Private property investment strategies are suitable for virtually every individual investor, and it is vital to find an investment that suits your personal risk. Choosing investment strategies and styles is no different from choosing investments, but each investor is unique and the best strategies are those that work best for him. [Sources: 5, 9]

The aggressiveness of your investment strategy depends on the risk potential you are willing to take and the type of asset you are investing in. [Sources: 16]

Broadly speaking, an investment portfolio with greater diversification carries fewer risks and more returns than one with fewer assets. Your capital allocation determines the level of total risk in your portfolio, and your asset allocation seeks to maximize the return you can achieve on your risk exposure. The risk of the asset itself contributes to the overall portfolio risk, so you decide whether or not to invest your portfolio in riskier investments. [Sources: 10, 12, 19]

Diversification is a good risk-mitigation strategy, but it only works if the assets you buy are truly uncorrelated. If a single investment fails, an asset class performs poorly, or the stock market falls, there is no diversification. If your entire portfolio is invested in risk-free assets, the line starts to intercept when it invests in risky assets. Note that you can mix high-risk assets with low-risk assets to obtain similar moderate-risk assets. [Sources: 3, 8, 15, 18]

To diversify, you need to invest in risky assets such as stocks, bonds, commodities and real estate, and [Sources: 3]

An example of an asset allocation strategy is based on the age and life phase of the investor in the life cycle of the investmentAn investment strategy in which the asset allocation changes with age. Some investors hold high risk investments – investments that are minimised by underlying assets such as shares, bonds, commodities and real estate. The ability to select a portfolio of high-risk assets and low-risk stocks and bonds is sometimes referred to as an investment fund theorem. [Sources: 8, 10, 19]

The greatest possible diversification across asset classes can be achieved by investing in an index, i.e. by individual investment and choosing the securities to be selected. [Sources: 19]

If you are worried about the direction of the stock market, but still want to achieve investment returns that are safer than stocks and pay more than risk – free assets – try this strategy. Another way to reduce your risk is to diversify by dividing your investments across a range of asset classes. To reduce risk, you need to expect less return, but depending on how much capital you have invested, you can still achieve decent returns without the stress of high-risk investments. By building and diversifying your portfolio effectively across asset classes, you limit your risk to unsystematic and avoidable risks while managing both systematic risk and unavoidable risk. [Sources: 6, 7, 14, 19]

The strategy of aggressive investing can also involve chasing stocks that perform well relative over a short period of time. This long-term investment strategy can encourage investors to invest in more volatile and risky portfolios, because the dynamics of the economy are uncertain and can change in favor of investors. The reality is that pensions are only as good as the competent financial adviser who offers them, and even with the best investment strategies they will not work for you in the long run. [Sources: 14, 16, 17]

A sound asset allocation strategy ensures that your investment portfolio is diversified and can meet your savings goals without unnecessary risk. Diversified portfolios are the foundation of a smart investment strategy, and diversification strategies can help you achieve more consistent returns over the long term and reduce your overall investment risks. [Sources: 0, 2, 4]

Aggressive investment strategies typically refer to a style of portfolio management that seeks to maximize returns while taking a relatively high level of risk. Here, an investor balances and adjusts the risk of his portfolio, adjusting it to maximize portfolio returns and minimize risk compared to benchmarks such as indices. Risk – a reduction in investment strategy is also known as not putting all eggs in one basket. In active management, portfolio managers try to achieve investment objectives with a strategy that suits the portfolio owner. [Sources: 1, 9, 11, 16]

Asset allocation is an investment strategy in which a person splits their investment portfolio into different asset classes in order to minimise investment risk. Although the triple investment strategy is undoubtedly the easiest, you want to make a decision about what you want to work for, how your assets are divided into different categories and how much risk you want to take. The second diversification decision concerns the achievement of portfolio diversification by investing in different asset classes. [Sources: 13, 17, 19]

One easy way to examine this is to look at a portfolio of risk-free assets – free assets that have low returns and no risk, and risky assets that have high expected returns and high risk; and riskier assets that have higher expected returns but higher risk. Passive management is the portfolio strategy that omits the decision to select securities and relies on index funds to represent the asset class in order to maintain long-term asset allocation. The strategy of circumventing securities selection decisions is called a passive investment strategy, which does not include securities selection for any asset class. These investments are expected to develop in line with the benchmark index. [Sources: 8, 19]

Sources:

(0): https://www.macquarie.com.au/investing/investment-diversification-strategy.html

(1): https://www.arborinvestmentplanner.com/investment-portfolio-management-basics-risk-asset-allocation-investing-strategies/

(2): https://www.moneyunder30.com/asset-allocation-for-investors-under-thirty

(3): https://moneysmart.gov.au/how-to-invest/diversification

(4): https://www.fidelity.com/learning-center/investment-products/mutual-funds/diversification

(5): https://origininvestments.com/2018/02/21/what-are-core-core-plus-value-added-and-opportunistic-investments/

(6): https://fundrise.com/education/blog-posts/investment-portfolio-diversification-why-you-need-it-and-how-to-achieve-it

(7): https://www.goodfinancialcents.com/low-risk-investments-options-high-yield/

(8): https://thismatter.com/money/investments/capital-allocation.htm

(9): https://www.thebalance.com/top-investing-strategies-2466844

(10): https://www.guidedchoice.com/video/dr-harry-markowitz-father-of-modern-portfolio-theory/

(11): https://retirecertain.com/ways-to-reduce-investment-risk/

(12): https://www.acorns.com/money-basics/investing/modern-portfolio-theory/

(13): https://www.clevergirlfinance.com/blog/3-fund-portfolio/

(14): https://www.forbes.com/sites/jrose/2016/06/23/8-strategies-that-offer-high-return-with-low-risk/

(15): https://www.moneycrashers.com/investment-risk-management-strategies-defense/

(16): https://www.investopedia.com/terms/a/aggressiveinvestmentstrategy.asp

(17): https://corporatefinanceinstitute.com/resources/knowledge/strategy/asset-allocation/

(18): https://education.howthemarketworks.com/risk-level/

(19): https://saylordotorg.github.io/text_personal-finance/s16-04-diversification-return-with-le.html

UOB Asset Management launches robo-advisory mobile app for retail investors in Singapore

UOBAM’s technology partner on UOBAM Invest is FNZ Group, a global financial technology company backed by Temasek in Singapore. FNZ Group …

UOB Asset Management (UOBAM) on Monday launched a robo-advisory mobile app for retail investors in Singapore, following the rollout of its UOBAM Invest online portal which was first introduced in 2018 for corporate investors.

The mobile app, also known as UOBAM Invest, offers investors in Singapore personalised, dynamic investment portfolios based on their risk profile, financial goals and investment horizon.

Retail investors can start investing using UOBAM Invest from S$1, with no account opening or closing fees. The advisory fee is 0.8 per cent per annum for investment amounts of S$25,000 and below, and 0.6 per cent per annum for investment amounts above S$25,000.

UOBAM said that its key service is the Digital Adviser, a portfolio planner that enables retail investors to invest in personalised investment portfolios generated based on their risk profile and aggregate financial goals.

The customised investment portfolio built from exchange-traded funds (ETFs) across different asset classes includes money markets instruments, government bonds, investment-grade corporate bonds, high-yield bonds and equities. The ETFs, which are listed on major US exchanges such as BATS, NYSE and NASDAQ, are selected for their breadth, liquidity and performance, said UOBAM.

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Retail investors can also fine-tune the investment portfolios by changing their goals, contributions, duration and risk tolerance level. They will also be able to see the success probability of achieving their desired returns.

The asset manager also noted that risk tolerance levels may change across retail investors’ investment horizon. As such, it has embedded a “glide path” formula into its investment model, which automates the shift in retail investors’ portfolio allocation from higher-risk assets to safer ones systematically and gradually, particularly towards the end of their investment period.

UOBAM’s technology partner on UOBAM Invest is FNZ Group, a global financial technology company backed by Temasek in Singapore. FNZ Group has more than 70 global institutional customers, including banks, insurers and asset managers.

On the launch, Thio Boon Kiat, chief executive officer of UOBAM, noted that the asset manager is combining more than three decades of investment experience with the use of technology “to make investing simpler, smarter and safer”.

“Given the current market volatility from the impact of the Covid-19 pandemic, we want to bring the benefits of our risk-based approach – one that is trusted by institutional investors – to more retail investors through UOBAM Invest,” he said.

In designing the mobile app, UOBAM said that it addressed priorities that retail investors considered important in a survey it conducted, namely credibility, security and long-term viability. The ease of managing investments was considered the biggest draw of robo-advisors.

3 Funds to Bank on Continued Rebound in Housing Starts

The fund mostly invests in equity securities of companies primarily engaged in or related to the real estate industry. The fund may also invest up to 15% …

The real estate market has demonstrated a rather stunning rebound over the past few weeks. This is despite the continued rise in new coronavirus cases and the pandemic’s impact on the job market especially during the early months of its onset in the country.

The rebound was mostly propped up by the Federal Reserve’s low interest rates, which have driven mortgage rates to record lows. In addition, positive data on the front of housing starts is also promising. Homebuyers’ interest in the U.S. housing market during this period of public health crisis is, therefore, justified.

Let us, thus, consider a couple of real estate mutual funds for investment.

Housing Starts Continue to Bounce Back

According to the Commerce Department last week, housing starts occurred at a seasonally adjusted annual rate of 1.19 million in June. The figure represents a 17% rise from May.

Between May and June, permitting activity for newly built homes increased 2.1% to a seasonally adjusted annual rate of 1.24 million. The optimistic figure indicates geared up activity in the housing market.

Mortgage Rates At Record Low

According to the latest data released by Freddie Mac last week, the 30-year fixed-rate average slipped to a historic low of 2.98%, marking a rate below 3% for the first time in 50 years. The reported mortgage rate is the lowest since Freddie Mac started to track mortgage rates in 1971. The rate averaged 3.81% a year ago.

A major reason behind such low mortgage rates is the near-zero federal funds rate. In June, the Federal Reserve decided to keep the benchmark rates unchanged (as decided by the central bank in mid-March) to put the U.S. economy back on track. The rates, which are currently in the range of 0% to 0.25%, are expected to stay at this level for the next two and a half years.

3 Funds to Buy

We have, therefore, selected three mutual funds that stand to gain from the strength in U.S. housing market. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). In addition, the minimum initial investment for these funds is within $5,000.

We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance but also on the likely future success of the fund.

The question here is why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).

TIAA-CREF Real Estate Securities Fund Retail Class TCREX aims for long-term total return via both capital growth and current income. The fund mostly invests in equity securities of companies primarily engaged in or related to the real estate industry. The fund may also invest up to 15% of its assets in real estate securities of non-U.S. issuers and up to 20% of its assets in equity and debt securities of issuers that are not engaged in or related to the real estate industry.

This Zacks sector – Real Estate has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

TCREX has an annual expense ratio of 0.81%, which is below the category average of 1.20%. It has returned 6.2% over the past three years. The fund has a minimum initial investment of $2500 and carries a Zacks Mutual Fund Rank #1.

DWS RREEF Real Estate Securities Fund – Class A RRRAX aims for long-term capital appreciation and current income. The non-diversified fund invests the majority of its assets in equity securities of real estate investment trusts and real estate companies. The fund may also invest some of its assets in other types of securities which may consist of short-term securities, bonds, notes, securities of companies not principally engaged in the real estate industry and other similar securities.

This Zacks sector – Real Estate has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

RRRAX has an annual expense ratio of 0.98%, which is below the category average of 1.20%. It has returned 2.4% over the past three years. The fund has a minimum initial investment of $1000 and carries a Zacks Mutual Fund Rank #1.

Manning & Napier Real Estate Series Class S MNREX aims for high current income and long-term capital growth by investing primarily in companies in the real estate industry. MNREX’s investment in debt securities is subject to a limit of 20% of its assets.

This Zacks sector – Real Estate has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.

MNREX has an annual expense ratio of 1.10%, which is below the category average of 1.20%. It has returned 2.1% over the past three years. The fund has a minimum initial investment of $2000 and carries a Zacks Mutual Fund Rank #2.

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US Global Investors (NASDAQ:GROW) Lifted to “C-” at TheStreet

Vanguard Group Inc. raised its position in shares of U.S. Global Investors by 23.4% during the 2nd quarter. Vanguard Group Inc. now owns 243,733 …

U.S. Global Investors, Inc. logoTheStreet upgraded shares of U.S. Global Investors (NASDAQ:GROW) from a d+ rating to a c- rating in a research note issued to investors on Thursday, August 29th, TheStreetRatingsTable reports.

U.S. Global Investors stock traded down $0.02 during mid-day trading on Thursday, hitting $2.00. The stock had a trading volume of 44,812 shares, compared to its average volume of 94,762. The firm’s 50 day moving average is $1.93 and its 200 day moving average is $1.45. U.S. Global Investors has a one year low of $0.92 and a one year high of $2.29.

A number of hedge funds have recently made changes to their positions in GROW. FNY Investment Advisers LLC purchased a new stake in shares of U.S. Global Investors during the 2nd quarter valued at about $31,000. Balter Liquid Alternatives LLC purchased a new stake in shares of U.S. Global Investors during the 2nd quarter valued at about $64,000. Perritt Capital Management Inc. raised its position in shares of U.S. Global Investors by 6.2% during the 2nd quarter. Perritt Capital Management Inc. now owns 740,000 shares of the asset manager’s stock valued at $1,339,000 after buying an additional 43,178 shares in the last quarter. Vanguard Group Inc. raised its position in shares of U.S. Global Investors by 23.4% during the 2nd quarter. Vanguard Group Inc. now owns 243,733 shares of the asset manager’s stock valued at $441,000 after buying an additional 46,282 shares in the last quarter. Finally, Toroso Investments LLC raised its position in U.S. Global Investors by 6.2% in the 2nd quarter. Toroso Investments LLC now owns 272,826 shares of the asset manager’s stock worth $493,000 after purchasing an additional 15,902 shares during the period. Institutional investors and hedge funds own 23.02% of the company’s stock.

U.S. Global Investors Company Profile

U.S. Global Investors, Inc is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds.

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CrowdStreet Launches Diversified Opportunity Zone Fund

PORTLAND, Ore., Sept. 9, 2019 /PRNewswire/ — CrowdStreet Inc. (“CrowdStreet”), a financial technology provider with an online marketplace for …

PORTLAND, Ore., Sept. 9, 2019 /PRNewswire/ — CrowdStreet Inc. (“CrowdStreet”), a financial technology provider with an online marketplace for direct equity investment in commercial real estate (CRE), today publicly launched a diversified investment fund through CrowdStreet Advisors, LLC (“CrowdStreet Advisors”), a wholly-owned subsidiary of CrowdStreet. The fund will focus on new development and redevelopment in small and mid-market U.S. Opportunity Zone communities with high growth potential.

A Qualified Opportunity Fund is an investment vehicle created to invest into a qualifying property or properties as defined by the Tax Cuts and Jobs Act of 2017 to incentivize investment in targeted communities called Opportunity Zones. By investing in the new CrowdStreet fund, investors can participate in multiple projects that are intended to increase access to high-quality jobs, healthcare, education and housing opportunities in distressed communities.

“Opportunity Zone investments align nicely with our general focus on 18-hour cities,” said Ian Formigle, Vice President of Investments for CrowdStreet. “These markets are up-and-coming metro areas with population and job growth rates that, in many cases, are outpacing larger 24-hour cities such as New York and San Francisco. Investors can feel good about boosting the economy of underserved communities while experiencing the most significant tax break in decades. With one of the most active marketplaces in the industry and our strong deal flow this year, we anticipate high-quality investment opportunities.”

Opportunity Zone investors may be able to defer capital gains through 2026 and receive up to a 15 percent tax reduction on current gains. However, the most powerful benefit comes through elimination of capital gains taxes on any returns generated by the Opportunity Zone investment, provided it is held for at least 10 years.

Today’s announcement of the fund launch follows the successful equity raise on the CrowdStreet Marketplace of capital for six individual Opportunity Zone projects across the U.S. The announcement also follows the successful fundraising for three other diversified offerings from a CrowdStreet affiliate, which raised nearly $27 million in total.

In 2019, CrowdStreet crossed $700 million invested by thousands of investors from almost every state across the country. Hundreds of real estate firms — from developers seeking financing for new projects to companies that specialize in improving or managing existing buildings — have conducted offerings on the CrowdStreet Marketplace.

About CrowdStreet Advisors

CrowdStreet Advisors is a registered investment advisor that manages commercial real estate investments on behalf of its clients. In addition to managing the CrowdStreet Opportunity Zone Portfolio, CrowdStreet Advisors provides personal investment advice regarding investments on the CrowdStreet Marketplace to individual accredited investors.

About CrowdStreet

CrowdStreet operates an award-winning online commercial real estate investment marketplace that gives accredited investors access to institutional-quality offerings. CrowdStreet technology allows sponsors to raise capital online and manage their investors, both on the Marketplace and with a SaaS solution. CrowdStreet is helping to create a community where individual investors and CRE firms can work together to build wealth through commercial real estate. For more information, please visit www.crowdstreet.com.

PR Contacts:

Melissa Hourigan (National)

Fabric Media

melissa@fabricmedia.net

720-608-1919

Cary Brazeman (Real Estate)

CRELIX Marketing Partners

cary@crelix.com

310-205-3590

SOURCE CrowdStreet

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