The investor decision-making process is determined by their individual requirements and objectives. This essay provides an overview of two approaches that might be adopted by investors when considering the efficacy of changing and selecting the approach to their portfolio.
In times of economic volatility investors often seek to
adapt their portfolio to reduce the potential for increased
risk related to the protection of their capital. Equally, in
deciding their investment criteria a number of investor
prefer to adopt a risk averse strategy by developing a
portfolio based on investment in guaranteed bonds. This
essay provides an overview of how these two approaches can
be developed to achieve the investor objectives.