My Finances

First posted: April 12, 2011

Any good advisor will tell you that he must know his client! What is less well known, however, is how important it is for the client to be aware of the different facets of his own personality when the time comes to manage his investments effectively.

Here are a few good reasons why you should complete the questionnaire that is used to build your investor profile. It will allow you, the client, to

• establish the investment strategy that is best adapted to your personal financial situation;

• improve your understanding of the characteristics of the investments that make up your portfolio;

• identify the best possible compromise between the anticipated yield and the related risk;

• manage your emotions inherent to the fact that it is your money at stake;

• define specifically the nature and scope of each of your financial objectives, in the light of your tolerance of market volatility and potential yield;

• position the realization of your short-, medium-, and long-term projects on a time scale. Your investor profile will help you project yourself into the future;

• group your investments within an action plan, regardless of your age and investment needs;

• appreciate the benefits of a healthy diversification of the assets held in your portfolio. It is widely recognized that 90% of the variations in a portfolio's performance depend on the importance given to the investments therein;

• seize the nature and scope of changes to be made, as required; and

• comprehend the reasons behind your advisor's recommendations.

These are a few of the reasons that should encourage you to use the services of your investment advisor. Since there is no such thing as a universal solution, each person must examine the many elements of his action plan in relation to his own situation.

Have you already experienced the added value of your investor profile in planning and executing your investment strategy?

Use the Discover your investor profile tool.