FYI: In the world of investing, few concepts matter more than portfolio construction. The delicate balance between risk-seeking and risk-avoidance will determine not only the types of assets you select but the underlying strategy you employ.
At the core of portfolio construction are the investor’s underlying objectives, risk tolerance and timeframe for investing. Good portfolio construction strategies reflect the investor’s objectives and constraints, whereas bad portfolio construction does not match an investor’s behavioral tendencies.
This is where advisors can add value by helping their clients through behavioral coaching. Regardless of their expertise or level of sophistication, investors often need help navigating through complex market cycles or holding onto investments that have underperformed for any length of time. Through behavioral coaching, advisors can better suggest the right asset manager or actively managed fund for their clients.
Regards,
Ted
https://mutualfunds.com/portfolio-management/best-practices-portfolio-construction/
