Getting access to the return potential of the capital markets is pretty easy these days. All you need is a securities account somewhere. But you can go about it in a far more effective way, and with even less effort: here are 5 reasons that make the case for our digital wealth management.
1) Pursue your investment goals in line with your profile
A glance at stock tips or fund rankings: that's how investing starts for many people. In their portfolios, this shows up as a colourful mix of securities that aren't aligned with one another. As a result, what investors end up with all too often isn't what they were actually hoping for.
Investing shouldn't begin with choosing products. It should begin with questions about your own goals: what do I want to achieve, and how much time do I have to do it? The right portfolio follows from your investment horizon and your appetite for risk. A pure equity portfolio, for example, isn't the best fit for everyone. To cushion the price swings of the equity portion, it can make sense to add bonds to the mix.
If you want to keep things easy: Before you invest with quirion, all you have to do is answer a few simple questions about your own profile. At the push of a button, you receive an investment proposal that suits that profile. Once your wealth management is set up, there's nothing more for you to take care of.
2) Invest on a scientific foundation
If you don't want to leave your investment success to chance, you need a sound strategy. Ours is based on the insights of many years of capital market research. Part of that is spreading your investments as broadly as possible across the equity markets.
Some background: science distinguishes between systematic and unsystematic risks. A company can go bankrupt; an industry or a region can slide into a long crisis. These are all unsystematic risks. It isn't worth taking them on, because they can be avoided through diversification. What you can't avoid, on the other hand, is the risk of general price fluctuations. But that is rewarded with the market return.
So instead of taking on unnecessary risks, our global portfolio targets the equity markets in their full breadth. Through ETFs, it currently holds stakes in around 8,000 stocks from more than 70 countries. The bond building blocks of the portfolio are broadly diversified too.
3) Leave the product selection to the professionals
With ETFs, in principle anyone can cheaply track the performance of a stock market index. But there are thousands of products. Even between ETFs on the same index, there are sometimes significant differences in costs or in performance. On top of that: individual ETFs usually don't offer genuinely broad market coverage. They often leave out potential sources of return or are too risky. The popular MSCI World, for example, is missing small companies and emerging markets. Finding the best combination for the broadest possible diversification within this vast range of products doesn't happen on its own. At quirion, experienced professionals make sure the investment strategy is implemented as efficiently as possible.
4) Keep the portfolio on course
Securities portfolios are always in motion along with prices. The weightings shift constantly, because some securities rise while others fall. In this way, the portfolio's overall orientation gradually changes as well.
An example: suppose an investor puts €10,000 into a portfolio. In line with their risk profile, it consists of 60 percent stocks and 40 percent bonds. Now, over the course of the year, the prices of the equity portion rise by 15 percent and those of the bonds by 1 percent. By the end of the year, the stocks then account for around 63 percent of the portfolio and the bonds for 37 percent. This means the portfolio's risk has grown.
For the portfolio to stay true to the intended profile, the effects of these value fluctuations have to be evened out regularly. At quirion, we take care of that at least once a year. Investors can sit back and relax.
5) Use an award-winning wealth manager
In Germany, we were the pioneer in digital wealth management back in 2013. By combining technology with low-cost ETFs, we made professional wealth management accessible to many people for the very first time. Since we were founded, we've received a great many awards. Time and again, we've stood out from the competition.
You can learn more about our global ETF portfolio here.
