You get started investing by finding an investment advisor to work with, opening an investment account, then establishing a personal investment plan based on your financial goals and risk tolerance.
Global asset management refers to overseeing the entirety of a client’s worldwide investments. This is done by a financial institution or an individual. It involves a wide range of wealth management services and products, including both traditional and alternative investments.
The first step in portfolio risk management is diversification. Don’t put all your eggs in one basket. Other steps include avoiding leverage, complicated derivatives and buying blue chip stocks and bonds.
The goal of diversification is to maximize gains, minimize risk and smooth out volatility. Stocks are diversified by investing in different sectors of the market, that perform differently at various points in economic and market cycles.
Over the long term, stocks provide the highest rates of return. Investors need growth to ensure that their capital grows more than inflation. When interest rates are low, dividend stocks provide higher yields than bonds.
Growth stocks are often in new industries or businesses involved in major societal changes, and expect to have higher than average revenues and/or profits. They often pay no dividend, since management invests returns back into the company.
Investors looking for income should consider a mixture of bonds, GICs, and stocks with higher dividends. Bank stocks, real estate investment trusts and utility companies traditionally pay higher than average dividends.
When the stock market has a large drop, the first thing to do is nothing. Avoid panic selling. If there is excess cash in a portfolio, this is an opportunity to buy stock at lower prices.
It is best to invest in a variety of sectors and have a diversified portfolio. Most well established portfolios will include the financial sector, the gold and precious metals sector, technology and industrials. Different sectors will perform well at different points in the market cycle.
Mutual funds provide instant diversification for young and new investors who don’t have enough money to diversify into at least five different stocks. Otherwise direct stock ownership is better, due to the excessive costs involved in most mutual funds.
An IPO is an initial public offering. It can refer to the process of changing ownership of a company from private to publicly traded. It also refers to buying shares in that company right before it starts trading.
Global Asset Management was founded on the principals of providing excellence in customer service and wealth management. Many years later our approach has remained the same. We pride ourselves on our long-term and multi-generational relationships.
17F East Center
Center 1 Building
26 Euljiro 5 gil
Seoul 04539, Korea
+822 3478 4126