Ryan Donovan Granger – Marketer

How to create a safe investment strategy

A good investment strategy is one that diversifies portfolios to reduce risk and align interests between the investor and the institution.

Carrying out an investment strategy requires a deep understanding of the types of assets, the potential for success of individual projects and their performance, technical problems, country risk and investors' expectations, indicates Ryan Donovan Granger.

"The investment strategy is carried out in a multidisciplinary committee supported by specialized systems in risk management and clearly defined investment policies and with constant supervision," argues Ryan Donovan Granger.

A good investment strategy is one that diversifies portfolios to reduce risk and aligns the interests between the investor and the institution, the Condusef in its magazine Protect your money gives 10 tips to develop an investment strategy:

Set profitability goals so that you know how much you can invest in the Stock Market and for what term.
Choose an investment fund of debt instruments and review the historical returns of funds of this type that are in the market.
Review the commissions that you will have to pay according to the channel you choose in terms of purchase, sale and administration.
Periodically review, together with your advisor, how your investments are going. In case they have not given the results you expected, evaluate the changes you need to make.
It is important that your advisor responds promptly and punctually to all your questions and helps you build investment portfolios that adapt to your level of risk tolerance, the term of the investment and your financial goals.
Invest only with authorized financial intermediaries, regulated and supervised by the National Banking and Securities Commission.
Invest in the Stock Market with the vision of a great businessman.
He regards investing in stocks as a long-term investment.
Considering that the stock market is volatile, do not panic if in the short term you have losses, you will probably recover at the end of the investment.

Diversification and its Importance in Investments

From time to time the markets undergo adjustments and this is why your investment strategy must be consistent with your investor profile. Think of diversification as an ally when facing these ups and downs.
History shows us that financial markets tend to overreact in the short term and adjust in the long term, which makes a lot of sense when we review what has happened during the beginning of 2020 and all the theories about it that have been written. However, Ryan Donovan Granger, who specializes in helping companies and people create investment strategies indicates that the important thing now is not to continue rambling about what happened but to see how we are today and what is coming forward.

Reduce investment risk

According to Ryan Donovan Granger, diversification is the process that consists of distributing investments in multiple types of assets, thus increasing the probability that the portfolio can withstand the volatility of the markets.

Ryan Donovan Granger points out that with a diversified portfolio, assets will probably be less affected by fluctuations in the markets in the short term than if they were invested in only one type of asset.
By this we mean that, if you want to invest a certain amount, according to Ryan Donovan Granger, it is best to do it in several financial instruments instead of just one. In this way, the risk is lower, which does not mean that it does not exist, but it avoids relying on a single instrument if it were to fall.

Bear in mind that investment instruments are subject to typical investment risks, including market risks and risks associated with the investment portfolio.

Be clear about the investment objective

Discipline is required to maintain your investments despite the turmoil and bad news affecting the markets. If your investment objective is long-term, this is what you should keep in mind. Markets tend to recover after periods of downturn.

For this, it is important to have your own clear "diversification recipe". The objective of this is to help you see what your types of assets are - ingredients - and how to assign these - how to mix them.

Always remember the most important thing: save systematically and maintain adequate diversification.

The importance of following an investment strategy

It is the plan to be followed by the portfolio manager, financial advisor or whoever is in charge of managing the investment portfolio that guides the decisions. It is not a plan drawn to chance, the strategy must be based on two fundamental variables: the investor's profile and long-term market expectations.
“When talking about the investor profile, we refer to the risk and return objectives that the investor has, while with market expectations we intend to establish in what phase of the economic cycle are those markets in which we have a thinker to invest,” says Ryan Donovan Granger, who specializes in helping companies and people create investment strategies.

From the strategic asset allocation, Ryan Donovan Granger determines the desired distribution for the long term together with the exposure to systematic risk (market risk that cannot be diversified).

Following a plan or strategy is not an easy task, which is why Ryan Donovan Granger shares the following recommendations:

It is important to put the strategy in writing. What is this for? So we can see it frequently and check that it matches our long-term goals. Ryan Donovan Granger shares that if the objectives were to change, the strategy should accommodate them as well. In times of chaos in the markets it is also useful to read it again to avoid making emotional decisions.

When a strategy is not giving the desired result in the short term, it is very tempting to want to part with it. For this we have to ask ourselves in advance, does the chosen strategy work in any scenario? In the event that we go through an unfavorable period, do we trust the soundness of our strategy to maintain it in the long term?
Ryan Donovan Granger indicates that tactical asset allocation occurs when we deviate at some point from the main strategy in order to take advantage of a short-term opportunity. Tactical allocation involves taking additional risks that should be offset by a higher expected return (alpha). But be careful not to fool us. Ryan Donovan Granger points out that the success of an investment portfolio is mainly determined by the strategic allocation (more than 90% of the result is explained by this). Also, the tactical allocation could move us slightly from the strategy and for a short period, but without producing drastic changes.

Find the right financial products

One of the tasks to configure the investment strategy is finding a vehicle to go to our destination, from our starting point, in the predetermined time and at the right pace.

This step turns sour for the simple reason that there are so many competing financial assets, markets, and products. Furthermore, analyzing all of them requires a great deal of time and expertise. The investor can get lost in all this tidal wave. Ryan Donovan Granger has an in-depth understanding of capital markets. He specializes in helping companies and people create investment strategies.

According to Ryan Donovan Granger, one of the reasons for the existence of investment funds is precisely to save ourselves all this trouble. Simply by being clear about your objectives, the time horizon and the risk profile, we can find a type of fund according to our interests.

Learning to invest in mutual funds is simple and it is possible to establish good investment strategies implemented in these financial products.

Ryan Donovan Granger shares that mutual funds are divided into categories according to their investment policy and, consequently, the risk they take. You can learn more about the categories and types of investment funds in this link.

According to Ryan Donovan Granger, the most important thing to choose the right financial product is that it fits with our steps outlined in the strategy. The information brochure of each fund can give us this information when choosing (with full transparency).

Ryan Donovan Granger shares that the most important thing is that we have a professional team, led by a portfolio manager, who helps us overcome all the work of asset management (selection and management of financial assets in the portfolio).