Investment Process:

Once we have established your future plans, goals and timescales we will need to assess your Attitude to Risk. The first stage in determining your risk profile is by completion of the Attitude to Risk assessment along with determining your knowledge and experience as well as capacity for loss. We believe it is essential to consider not only a client’s willingness and ability for loss but importantly their financial and emotional capacity for loss.

We would then look to identify any specific tax wrappers to be utilised, undertake asset allocation and subsequently select appropriate funds for the client. At this stage we would be in a position to implement the recommended plan and purchase wrappers and funds.

We believe our investment process provides our clients with the best opportunity to achieve superior returns over the medium to long term.

At Margetts Wealth we base our success and principles on high levels of service and customer care, hence our fee model is based on the delivery of service and investment performance of peoples money in a range of assets. Based on this ethos it is more important than ever to monitor the selected funds to ensure the continued suitability. At Margetts Wealth as part of our full service proposition we would provide a regular reviews as standard.

The final stage of the investment process is to undertake an annual review of all investments at a face to face meeting with the client.

Risk Profiling

Margetts Wealth believes that when establishing or reviewing a portfolio, an investor’s most important decision is how much risk they are willing and are able to take in order to achieve their objectives. This will determine the expected returns for their portfolio.

Margetts has developed a risk reviewing questionnaire, tackling both elements of an investor’s risk profile. This review provides the adviser with feedback, which can promote further discussion to set the risk profile of the portfolio. This tool is not designed to replace the advisory process, but may assist in understanding an investor’s risk profile and combine it with any of our possible investment ‘outcomes’.

An investor’s ability to take risk is a factor of the following categories:-

  • Time Horizon – The longer the time horizon for investment the greater risk that can be afforded.
  • Liquidity – If income or withdrawals are required to be taken from the portfolio, especially in the short run, the level of risk that can be afforded will be reduced.
  • Wealth – Investors with a higher asset base relative to their future needs will have a higher ability to take risk. In addition, investors with a higher disposable income will be able to offset losses with higher savings and therefore have a higher ability to take risk.

Willingness to Take Risk

An investor’s willingness to take risk is subjective. Just because an investor has a high ability to take risk does not mean that they need or want to take more risk. At Margetts Wealth the relationship we will form with you will help to understand your risk aversion. In addition, hypothetical questions relating to losses, range and experience can help to build a picture of the client’s willingness to take risk

Click Here to access our Interactive Risk Investment Profiler.

‘You should remember that the value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.’