Methodology of building a portfolio

Financial planning at Prestige enables you to find a solution that will help you get what you really want. It is a process that includes seven stages.

1. Adequacy assessment

The first stage of planning your financial future is so-called adequacy assessment of your investment knowledge and experiance. The assessment will enable to establish whether you are aware and ready to accept a level of risk related to the investment instruments and products offered by the Bank.

2. Client profile identification

Now, it will be necessary to establish your investment profile. We have to check whether you are willing to invest in high-potential and high-risk products, or whether you prefer products which yield lower profit but ensure higher security of the capital invested.

3. Needs and objectives analysis 
Another step is to analyse your future financial needs. We will ask you to formulate your investment goals and the time horizon for their achievement based on the evaluation  of your current and future financial situation. It is extremly important whether the time for amazing and multiplying your capital is e.g. the following 10 or 30 years.

4. Assets allocation - a template portfolio
At this stage, with your goals, risk profile and appropriate groups of financial instruments and products already known, you will determine the structure of your investment portfolio. You will decide which classes of assets you will invest in long-term products, and in short-term products, and how much should stay liquid.

5. Product selection
It is only at this stage, that we will discus specific products. We already have all the information you need to make a proper selection. We know your objectives and preferences, and the structure of your portfolio, we know what products are available. Appriopriate products serve as a tool enabling you to implement the strategy compliant with your investment profile.

6. Portfolio development
It's time for you to create your investment portfolio, i.e. to buy the selected products.

7. Portfolio analyses and modifications
The key stage of your selected investment strategy is its effective and consistent implementation. A precondition for such a implementation is monitoring the extend to which your objectives are met and whether all the current oportunities are used. This will allow you to adjust the strategy at the right moment to the changing market environment, your individual preferences or situations in life.