Why investing goal-based?
We all need to grow our wealth and goal-based investing is the best and most transparent way of doing so. It is centered around what you want to achieve with your investments and it’s success is defined by reaching it. It is the ideal investment strategy to capture behavioral aspects of human nature and every change in the strategy is solely justified by maximizing the success probability of reaching your goals, making it transparent and efficient.
Goal-based wealthtech
Scientific basis
Behavioral portfolio theory
Investment strategy
Goal dependent & tailored
Risk allocation
Multiple & dynamic
Strategy adjustment
Dynamic and market dependent
Success measurement
By reaching your goals!
Goal-based 2.0
dynamic investment strategies over time
Our goal-based investment engine operates dynamically. This means that the initial investment strategy is not carved in stone but adjusted depending on market conditions and time. This distinguishes our approach from most conventional fintech wealth management platforms. The following stylized example illustrates the case.
Goal:
buy a house
Time:
in 8 years
Necessity / Impact:
medium
Appropriate investment risk range:
from low to medium
Initializing investment portfolio
In this example your goal investment portfolio at initiation would consist of 30% equities, 25% sovereign bonds and 45% cash. This is how you start!
Cash 45%
Bonds 25%
Equities 30%
Our goal-based investment strategies are hence fully adaptive to changing market environments. Contrary to conventional wealth management solution we do not propose one “buy-and-hold” strategy but instead advice how to augment the portfolio through the evolution of time, making sure that the goal can be achieved with the requested success probability, i.e. confidence.This requires from the investor to revisit the goals on a regular basis, ideally every 6-12 months and to adjust the strategy accordingly.
What happens if a goal cannot be reached anymore?
In case of an unforeseeable shock that cannot be mitigated via higher exposure to risk, e.g. because higher risk is not suitable for the investor given his risk appetite or ability to take risk, the algorithm will advice on how to change the regular contribution to still achieve the appropriate investment target or how much the target needs to be reduced to become feasible again.