Investment strategist Robert Talevski unlocks financial success by leveraging 27 years of investment management expertise. Prior to founding Activam, he honed his craft internationally as an Investment Consultant, advising clients with $50 billion in assets.
Mastering investment management requires patience, discipline and ongoing education. The first step is defining your financial goals and understanding your investment time horizon and risk tolerance.
Define Your Financial Goals
Setting financial goals is an effective way to manage your money. They help you prioritize spending, curb unnecessary expenses, and save for milestones like retirement or buying a new car. Having clear financial goals also helps you track your progress and determine when adjustments need to be made.
To set a financially-oriented goal, you need to have a plan that is SMART – specific, measurable, achievable, relevant and time-based. For example, you can create a SMART goal such as “I will save Rs 12.4 lakhs by investing in assets” that is specific to your needs, measurable and achievable in a certain timeframe.
Robert Talevski is a seasoned multi-asset portfolio manager with more than 27 years of experience managing investments for large Australian superannuation funds and institutional investors. He founded and leads Activam Group and champions innovative investment approaches. Beyond his professional pursuits, he advocates for Autism-related causes, reflecting his passion for social impact. He holds a Bachelor of Business (Accounting & Law) and a Graduate Diploma in Applied Finance & Investment.
Asset Allocation
The division of investment portfolios among major asset classes—stocks, bonds and cash and cash equivalents—is a key factor that determines overall risk and returns. This process is known as asset allocation, and it is based on your financial goals, investment time horizon and your risk tolerance.
There is no one-size-fits-all asset allocation strategy, but many financial experts agree that you should diversify and regularly rebalance your portfolio. This means selling investments that have performed well and adding money to those that have fallen behind your target asset allocation.
A fundamental justification for diversification is that different asset classes offer different levels of risk and return potential. This means that by combining assets, you can reduce overall portfolio risk while maintaining the level of expected return. It is important to review and rebalance your asset allocation periodically as your financial situation, investment horizon and risk tolerance change. This will ensure that your portfolio stays on track to achieve your goals.
Stay Disciplined
The investment landscape is constantly evolving and requires a disciplined approach. This includes staying informed by reading reputable financial publications, attending seminars or webinars, and seeking guidance from certified financial advisors. It also means consistently saving and investing, even during periods of market volatility or economic uncertainty.
Successful investors prioritize their long-term objectives, avoid knee-jerk reactions to market fluctuations, and follow a well-defined strategy. They also stay diversified and rebalance their portfolios on a regular basis. Investing discipline helps them manage risk more effectively by eliminating emotional and impulsive decisions from their decision-making process.
Warren Buffett, a famous investor, exemplifies the importance of maintaining discipline. He has built his wealth by following a consistent investing plan and resisting the urge to tinker with his portfolio. By following his example, you can learn to master the art of investing discipline and build wealth over time. It isn’t easy to develop a disciplined investing mindset, but it is possible with patience and persistence.
Monitor Your Portfolio
As an investor, it’s important to monitor your portfolio regularly to assess your performance and risk exposure. This will help ensure that your investments remain aligned with your financial goals and risk tolerance, enabling you to make adjustments as needed.
It’s also important to consider how different assets are performing together, rather than in isolation. For example, it’s common for investors to focus on how their portfolio performs relative to the S&P 500 Index. However, the S&P 500 only measures a small subset of the market, and isn’t representative of the overall risk and return characteristics of all investment markets.
If you’re not comfortable monitoring your own stock portfolio, it may be beneficial to seek professional advice. A qualified investment strategist can provide you with guidance on navigating complex investment decisions and optimising your portfolio to meet your financial goals. They can also assist with establishing clear investment goals, utilising portfolio management tools, diversifying your investments, and regularly reviewing and rebalancing your holdings.