• Tel: 01444 410 276
  • Foundation Financial Planning, 2nd Floor, 38-42a South Road , Haywards Heath, West Sussex, RH16 4LA, front entrance next to HSBC Bank
  • RH16 4LA

Investment Principles

With investment generally the more risk you are prepared to accept will lead to higher returns over the long-term but also normally means more volatility (up and down movements) which can be very scary to the inexperienced investor and may mean you making bad decisions should your investments fall unexpectedly.investment principles graph

Investing in cash and bonds to deliver a predictable return may seem prudent but over the long-term inflation could wipe out any gains you make whereas investing in property and shares is likely to give you a return over the long-term significantly above inflation, making your money work harder for you but you have to live with the increased volatility.

Combining different types of investment (property, shares, bonds and cash) via an asset allocation model can help to even out these swings in value, especially if they are "non-correlated" (i.e. their prices move independently). This is why it usually makes sense for investors to have some exposure to bonds and cash even though their long-term potential is less than that of property and shares.

The asset allocation of a portfolio has a direct impact on the level of risk as does the timeframe for investment. If you need the money in three years’ time, you should take much less risk than if you intend to invest for twenty years.

We will help determine the risk you are prepared to take, talk about the options for maximising your return within your risk tolerance and then select a suitable model portfolio with you. Our investment models reflect your financial goals, attitude to risk and your investment timeframe. We invest in a range of asset classes, spreading your investments and thereby reducing your risk.

Also See -

Passive Vs Active Management Lifestyle and Target Date Funds

Unit Trusts Risk and Reward OIECs Investment Trusts

Structured Products

 

Home/Blog/Brexit Commentary


Foundation Financial Planning (FFP) offer a ‘value added’ investment service building bespoke portfolios from scratch or as an enhancement to your existing investments.  FFP is not a discretionary fund manager so we make you aware of any changes we make to your portfolio.

Portfolios are bespoke and are built on a step by step basis using Morningstar asset allocation parameters.  We avoid using model portfolios as a default option because we feel model portfolios do not correlate with our philosophy of tailoring our service to meet our clients needs. A feature of our approach to investing is that we divorce our fee from the activity of investing.  This means we charge a fee for the preparation and execution of the investment process.

This fee may come from you the client directly, or from the fund (whatever has been agreed) but our fee is not triggered when we initially invest your funds. To be remunerated when you invest a client's capital may cause biases and cloud judgement which is why we divorce our fee from the activity of investing.  For more information on our investment process please ask us for our 'Investment Process' document. Our investment advice is 'In-house' i.e. investment advice is not contracted out.  Foundation Financial Planning have a dedicated full time investment researcher who works with Gianni on investment decisions and strategy.

 

The above graph shows the efficient frontier and how we use this metric to measure out risk and portfolio efficiency for our clients

DSC_4850

Foundation Financial Planning carry out in-depth analysis of each individuals risk tolerance and take into account objectives and time horizon.  We also find out the ethical concerns of the clients we deal with.

The value of investments can fall as well as rise, you may not get back the amount you have invested.  Income from investments can fall as well as rise.

 

Formatted HTML:

Our core principle is to 'add value effectively'.


 

IMG_6400View Gianni Campopiano's profile on LinkedIn


 

 

 

More on this graph can be found below.