Investment planning and asset allocation

Keeping up with the science

Investment planning is now more of a science than an art. Technology, ever-increasing investment opportunities and stricter regulation have all encouraged a more scientific approach. But has your investment strategy kept up pace?

Investment planning and asset allocation is a multi-stage process. The actual execution of investment transactions is virtually instantaneous, but the decisions behind them need time and should not be hurried. Taking action under pressure, for example as a result of the market reactions to the Covid-19 pandemic, is best avoided. There are many different approaches to the investment planning and asset allocation process, but most will broadly follow the step-by-step framework, explained in this guide.

The Guide covers the following topics:

• UNDERSTANDING RISK 
  How knowing your attitude to risk should be an integral part of your investment strategy
• ASSET ALLOCATION
  Asset allocation is arguably one of the most important factors for generating returns.
• HOW TO PICK AN INVESTMENT FUND
  What you should consider when picking a fund to invest in.
• STRUCTURING YOUR INVESTMENTS 
  Once you have an investment plan, you should choose your tax structure and investment platform. 

Click here to download your copy of Investment planning and asset allocation.

This publication is for general information only and is not intended to be advice to any specific person. You are recommended to seek competent professional advice before taking or refraining from taking any action on the basis of the contents of this publication. The Financial Conduct Authority (FCA) does not regulate tax advice, so it is outside the investment protection rules of the Financial Services and Markets Act and the Financial Services Compensation Scheme. This publication represents our understanding of law and HM Revenue & Customs practice as at 4 January 2021.