Many people shy away from risk on the stock market. Of course, as always in life, there are no guarantees when investing in shares. However, there are hedging strategies to achieve attractive long-term returns on invested assets. And you should know this.
Many people are reluctant to invest their assets in shares. The risk seems too high. Anyone following the ups and downs on the stock markets may indeed come to the conclusion that shares are risky. But the statistics say otherwise: In the long term, equities generate higher returns than all other asset classes – namely an average of around 6.7 percent per year.
No other form of investment can achieve this. Two prerequisites are important for success on the stock market:
1. investor profile
First of all, every investor must ask himself or herself how willing and able to take risks he or she is. After all, there are no guarantees on the stock market. This self-analysis is important in order to define your own investment strategy and determine the allocation of your assets.
Our investment profiler helps you to find out what type of investor you are.
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2. risk management
Once you have implemented your investment strategy based on your self-analysis and your goals, the second step is active and good portfolio management that recognizes and hedges risks at an early stage. There are various methods and models for this.
Diversification is very important – for example according to different asset classes, currencies, maturities, liquidity and volatilities (share price, price, currency or market fluctuations). If you invest in shares and corporate bonds, diversification by sector, country and type of company makes sense.
In addition, risks can be significantly reduced using stop-loss orders or derivatives and your investment can be effectively hedged.
Find out now about the most important hedging options on the stock market.
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Absicherung an der Börse: Erfolgreich investieren
- wie Sie sich vor Risiken bei der Aktienanlage schützen
- warum Diversifikation so wichtig ist und wie man sie richtig einsetzt
- was Stop-Loss-Aufträge, Termingeschäfte und Put-Optionen sind und wie diese Finanzinstrumente Risiken reduzieren
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That sounds complicated? That’s right. You need the necessary expertise and experienced specialists for this kind of systematic risk hedging on the stock market. At Point Capital, we have developed our own model to reduce risks on the stock market in certain market phases. Based on the risk profile of our clients, we define a suitable investment and hedging strategy, implement it, monitor market developments and constantly review the strategy and asset performance. This allows our clients to concentrate on other things in life with peace of mind. Find out more about our investment approach.
