Investing in the world today
People who have accumulated capital want to see it grow effectively. What to do next?
Most investors have three options:
- They can manage it themselves: for most people this is a difficult task, due to a lack of time and appropriate knowledge.
- They can use a major institution ie. bank or stockbroker: while they have varying levels of expertise, they are seldom interested in the investor as an individual. The result is often some performance with little or no service.
- They can use a small Independent Financial Adviser (IFA): while these companies are better with individual service, they lack in-house expertise and usually show little or no concern about how to manage the invested capital.
GPI is the perfect balance between the major institution and the smaller IFA. The asset managers from Mithril are solely focused on providing a day-to-day service, actively manage client portfolios.
Cash and Asset Allocation
Investing in the 21st century has two central considerations – risk & return. When considering any investment, your primary concern should be the return you expect and the level of uncertainty associated with it, which means that different types of asset have different kinds of risk attached to them.
Cash is not risk-free! Cash is often described as a ‘risk-free’ asset, but in reality, it is not. Holding all your assets in this form involves two obvious risks: inflation risk and exchange rate risk, which means that your money can buy more (or less) abroad, depending on exchange rate movements. Also, the cash deposit itself is only as safe as the bank that houses it.