Understanding the interaction between the investment markets and
human emotions is key to growing and preserving your wealth.

Most investment strategies, especially at stock brokerages, are simply a series of short-term speculative bets strung together and called “investing”. Research has shown that these active-management strategies are promoted by overconfident investment companies, money managers and stock brokers who too often place their interest before yours.

At arpadWEALTH we offer you a choice. If you are concerned about MERs (Management Expense Ratios) and believe that you can withstand the volatility inherent in any index, we will construct you a portfolio made up of various indexes. This broadly diversified portfolio will have a mix of equities and fixed income, rebalanced periodically based on your target asset allocation.

The other option is that you utilize our carefully selected and monitored short-list of portfolio managers to lower your risk (volatility) and have a good chance of increasing your return net of fees. Although this will cost you 0.90% more per year, it saves you many sleepless nights during a market downturn, not to mention the danger of losing your cool and switching out of the investments at the perfectly wrong time. That investor behaviour is the kiss of death for any financial plan. The exceptional performance of the TFSA portfolio owned by one of our clients was achieved by an active investment management mandate.

More specifically, we adhere to the following investment principles:

  • We respect your decision as to whether you prefer an indexing or active-management investment strategy.

  • We place a strong emphasis on appropriate asset allocation between stocks and bonds, and among large and small, Canadian and global, and growth and value equities.

  • Noticeably absent from our strategy are complex, speculative or exotic “alternative’ asset classes to increase transparency without sacrificing performance.

  • We are disciplined in rebalancing your portfolio to established asset class targets when necessary to ensure proper risk management and increase expected returns.

  • We never engage in costly and speculative tactics such as stock picking, sector rotation or market timing.

  • We are focused on tax efficiency in your investments and we keep your total investment cost as low as possible by enrolling you into various high net worth solutions where it is appropriate.

A disciplined adherence to your investment plan, which we strive to enforce through our investment counselling, significantly improves its chance of success.

Mutual Funds Provided Through Equity Associates Inc.           DISCLAIMERS  •  PRIVACY           Copyright © 2015 - Arpad Komjathy