Have you been recommended to use an investment advisor but aren’t sure what to expect? Finding out what services an investment advisor provides can be tricky, but it doesn’t need to be. Our brief guide shows you the main services an investment advisor can provide and how they can help you shape and manage your investments.
What is an investment advisor?
An investment advisor is a skilled person able to provide investment recommendations to help you get the most out of your investments. They can also perform security analysis to help you handle your current assets and investments without worrying about losing money. Investment advisors typically work with individuals or companies and help protect your assets while adding to your wealth and investments.
They work with you to understand your investment goals and portfolio and offer advice that helps you achieve your goals. Investment advisors create investment strategies that match your needs while considering your risk tolerance and style. Not only do they help grow your investments, but they also offer budget assistance, debt management, and financial planning services.
What services does an investment advisor provide?
Investment advisors usually offer a variety of services that will help you grow and manage your portfolio. The services they provide will vary depending on the investment advisor that you choose, but you can expect them to include the following:
- Budget assistance
- Debt management
- Financial planning
- Investment advice
- Portfolio management
When it comes to managing your portfolio, an investment advisor will usually run through several options as to how your portfolio can be managed. Each advisor will have several options they usually use, and they might vary, but typically, you can expect to see the following portfolio options:
Conservative portfolio
A conservative portfolio protects your capital while also giving you growth opportunities to explore. The focus of these portfolios is defending your assets, so you will unlikely be recommended to make any high-risk investments. Instead, you can expect a split of 80% defensive and 20% growth, allowing you to grow your portfolio with fewer risks than other options.
Defensive portfolio
Defensive portfolios protect your capital and stability instead of focusing on high returns. The focus will be on assets that aren’t as volatile, helping you to grow your portfolio without worrying about any changes to the market impacting you. A defensive portfolio is typically 100% defensive.
Diversified income portfolio
A diversified income portfolio gives you a balanced approach to long-term wealth accumulation. Investments are split down the middle, with a 50% focus on defensive assets and 50% on growth assets. This split allows you to maximise your growth options while protecting your portfolio from downturns, preventing you from losing too much money.
Growth portfolio
A growth portfolio helps you to grow both your investments and portfolio. An investment advisor will help you grow part of your portfolio and increase your investments. They will also reserve part of your investments, offering some protection and providing you with stability while your portfolio grows.
This can look like a split of:
- 80% growth
- 20% defensive
High growth portfolio
High-growth portfolios focus on increasing your portfolio worth and are a great choice if you want to increase your capital in the long term, especially if you aren’t too worried about risk levels. It’s worth noting that the more you focus on growth, the higher levels of risk there are. If you are able to move to a high-growth portfolio, you could reap the rewards of the risk.
With a high-growth portfolio, you will focus on 100% growth.
Moderate portfolio
A moderate portfolio is designed to help grow your assets without there being too much risk. Usually, there will be a slot of 40% on defence and 60% on growth assets, offering a potential of higher return but with a little risk. Moderate portfolios are a good option for anyone who wants to explore their growth, but with protection in case the market changes.
When should I use an investment advisor?
You should use an investment advisor if you have investments already or are considering making investments. They will help you to decide if the investments are right for you and guide you towards making investments that are right for your finances.
You should also speak to an investment advisor if you have never made an investment before, as they can help you understand the confusing world of investments and ensure that you make the right choice for your finances.
Speak to an investment advisor at Solace Financial today
Investment advisors are worthwhile to anyone with investments or looking to make one. Solace Financial has a team of expert investment advisors that can help you get the most out of your portfolio. Speak to one of Solace Financial investment advisors to see what services they can offer you.
