Video | What does a financial adviser do?

Build a portfolio that strikes a perfect balance

In this video you'll learn:

how a financial adviser adds value;
why investors are rewarded for the amount of risk they take; and
how financial advisers can help you achieve your financial goals

Transcript

One important way in which a financial adviser adds value is in setting a suitable asset allocation.

Investors are rewarded for the amount of risk they take.

But because we’re all different, each of us has our own attitude to risk.

Also, depending on their age or financial situation, some may need to take more risks than others; similarly, some investors are less able to take risks than others.

It’s up to your adviser to work out just the right amount of risk for you and then to build a portfolio that strikes a perfect balance between riskier assets such as equities and less risky ones, like bonds or cash.

Your adviser will also ensure that your portfolio is well diversified. The aim is to provide you with the highest possible returns for the level of risk you choose to take.

This will take time — and some in-depth conversations with your adviser.

But it’s very important. Get it right, and you’ll give yourself the very best chance of achieving your financial goals.

Jump to the next step in the Value of Advice series that interests you the most:

Do I need a financial adviser?

How to control your investment costs

How to grow, protect and enjoy your wealth

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RISKS

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