Coronation Asset Management, an arm of Coronation Merchant Bank, has emphasised the importance of a “Portfolio Through Every Season” strategy for investors in Nigeria, highlighting the need for diversification and flexibility to navigate the country’s dynamic market.
In a new report, it stated that this approach ensures that investors can withstand economic fluctuations and capitalise on emerging opportunities, particularly during periods of uncertainty.
The strategy revolves around spreading investments across various asset classes, sectors and geographies, allowing investors to manage risk effectively.
Coronation Research recommends maintaining a balanced portfolio consisting of high-quality stocks, dividend-yielding bonds and alternative investments, all of which should be tailored to the individual’s risk tolerance and financial goals. This adaptable approach positions investors to optimise returns while minimising potential losses as markets shift.
In an emailed note to clients, the firm disclosed that the crux of the “Portfolio Through Every Season” strategy lies in diversification, which is essential for risk management. By balancing stocks, bonds and alternative investments, investors can adjust to changing market conditions.
“This proactive portfolio management strategy is especially relevant in an environment of economic uncertainty, allowing investors to maintain financial resilience. The financial world is complex and navigating investment decisions alone can be overwhelming, especially as markets become more volatile.
“Trained to understand both market trends and individual needs, financial advisors design personalised investment plans to meet specific requirements.
“Advisors assist investors in every life stage, whether the investor is early in their career, midlife, or nearing retirement. Through each phase, they help clients navigate evolving financial goals, such as saving for education, planning for retirement, or creating sustainable income streams during retirement,” it stated.
As Coronation Research points out, life events such as marriage, job loss, or even economic shifts often necessitate significant adjustments to investment strategies and having an expert to guide these transitions can make all the difference.
It noted that financial priorities change as people move through different stages of life. In early adulthood, the focus is on building an emergency fund or saving for significant milestones like buying a first home. Midlife introduces new responsibilities, such as saving for children’s education or retirement, while in retirement, the focus shifts to maintaining a sustainable income stream. Each of these stages presents distinct financial challenges, making the need for professional advice crucial.
It said: “By adjusting investment portfolios to match life stages, advisors help investors maintain a financial trajectory that aligns with their evolving goals. Regular reviews and rebalancing of portfolios ensure that investors stay on track, while also mitigating risks associated with market changes.
Coronation Asset Management provides personalised attention and ongoing portfolio monitoring. Their advisory services include access to a broad range of investment options, allowing clients to tailor their portfolios based on their specific needs.
Coronation Asset Management provides unbiased recommendations and acts in the best interests of their clients, offering time-saving and objective advice. They help investors avoid making emotional decisions, such as panic selling during market downturns or overinvesting in speculative assets during market booms. Instead, they encourage long-term, balanced investment strategies that reflect clients’ goals and risk tolerance.
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