reid said:
wolfman7 said:
reid said:
structured products like ETFs or money market funds. they're require 100k lump sums to initiate but your capital is protected and you have a variety of funds to invest with various equity linked profiles.
to have a balanced book of investment you want liquid and long term funding.
long term will hedge volatile liquidity while balancing your returns.
just my view as diversification is key.
ETF's are not strucutred products. A structured product is for example combining a long position in an equity instrument, with a put option on the same instrument, at the price you went long. This protects downside and leaves unlimited upside.
balanced book of investment? what does this mean?
balanced book = match liabilities with assets, long term liabilities with long term investments? is this what you mean?
every portfolio should be structured to custom fit each individuals needs. you can't apply a blanket to all investors.
you must take into account investors risk appetite, liquidity needs, and return expectations. Then only can you create a portfolio.
ETF's are not structured products-ETFs are in fact Collective investment schemes. A structured product is for example combining a long position in an equity instrument, with a put option on the same instrument, at the price you went long. This protects downside and leaves unlimited upside.
Structured products facilitate bespoke risk-return objectives. This is accomplished by taking a traditional security, such as a conventional investment-grade bond, and replacing the usual payment features with non-traditional payoffs derived not from the issuer's own cash flow, but from the performance of one or more underlying assets. Doesn’t need to be equity as mentioned above
balanced book of investment? what does this mean? Apologies for my simple English here- I want to provide a level opinion which everyone can relate to and not fill this thread with jargon to show off my knowledge.
balanced book = match liabilities with assets, long term liabilities with long term investments? is this what you mean? This is not IFRS or GAAP – balanced in terms of long vs short term investment.
every portfolio should be structured to custom fit each individuals needs. you can't apply a blanket to all investors. – thus the mentioned or risk and time horizon
you must take into account investors risk appetite, liquidity needs, and return expectations. Then only can you create a portfolio.- Technical analysis
thanks
collective investment schemes are not structured products.
i said example when i described a structured product, with the intent to simplify it and not confuse.
you basically described turning a safe bond that pays you fixed interest and payment, into a structured equity product. Not necessary. Yes you may use a zero-coupon risk free bond in the structure, but not replicate safe cashflows with risky ones. normally the aim is the other way around.
IFRS or GAAP? an individual is like a balance sheet. "you can't balance long term investments with short term". what are you balancing here? risk? return?
those are the only factors that matter and neither are balanced with time horizon. time horizon is only used to supplement liquidity needs, that is if an investor requires funds in the next 3 years for your kids education.
Technical analysis? do you even know what this is? just by stating that, you have shown me how little you know on this topic.
those factors are from the classical theories of portfolio construction, and based on fundamental laws.
Technical analysis is for part time traders that see stars in stock movements
please don't advise on such serious matters without the adequate knowledge.