A risk approach is widely used among institutional investors, but many individual investors and advisors do not broadly understand the concepts and disciplines.
Diversified portfolios are no longer reliable bomb shelters for money as the global financial crisis and the worldwide COVID-19 crisis have shown investors and advisors alike.
Watch the video below as our founder, Akhil Lodha, explains…
In the absence of a proactive approach, investors are fully exposed to the market’s many risks and must make up any losses before they need the money in their investment accounts to provide for retirement expenses, send kids to college, or cover unexpected expenses.
“Diversified” portfolios don’t protect against increases in volatility.
Broadly allocated portfolios look diversified on the surface, but during times of heightened market volatility, they commonly fall in unison—or exhibit short volatility traits.
Short volatility exposure generally delivers losses as market volatility increases, while long volatility exposure generally delivers profits as market volatility increases.
Option overlays can balance the portfolio by adding long volatility exposure.
Our PRISM™ risk analysis software uses a blend of risk tolerance questionnaires, historical market events, and current market signals to provide advisors with all the data they need to know about their customers and plan accordingly.
If you work with 4 or more advisors in your firm, request a free demo.
I help make life easier for financial advisors. With our PRISM Ratings Tool, your clients can finally understand the risks associated within their portfolio, giving you the ability to take concrete action to lower these risks, while giving your clients peace of mind.