A portfolio needs a purpose.
Wealth management · A framework for portfolio decisions
A portfolio starts with the purpose of the money. An attractive investment can still be unsuitable for a near-term commitment, a particular risk tolerance, or an investor who needs ready access to cash.
Define the decision before selecting investments
- Objective: Identify what the capital is intended to fund and when it may be required.
- Time horizon: Consider how much time is available to absorb volatility and whether the investment can be held through a difficult period.
- Risk tolerance: Assess both the financial capacity to take losses and the ability to stay with the plan during a drawdown.
- Liquidity: Understand exit conditions, settlement, and the cash needed for foreseeable commitments.
A clear objective gives every investment a role and every portfolio review a reason.
Review the portfolio as a whole
Look across equities, fixed income, real estate, commodities, and cash for concentration, overlapping holdings, liquidity constraints, and common risk drivers. Include property and other assets held outside the investment account. Diversification can reduce concentration risk; it does not eliminate the possibility of loss.
Keep the review tied to the plan
Revisit the allocation when financial goals, liquidity needs, risk tolerance, or investment assumptions change. Check whether market movements have materially altered the intended balance of the portfolio.
Educational framework. No personalised asset allocation or product recommendation is made.