How can you benefit from the analysis of your portfolio?

authored by
Christos Alonistiotis
04.03.2021
Empower your Future
8 minutes read

The ease of access to information, the speed of access and the volume of information that an investor receives during his investment activity, form a crystallized view of the available investment options that exist. However, in all these cases, the information is general and anything but useful.

Impressive graphs and comparisons, monthly returns statements, specialized investment philosophies. These alone are not enough for an investor to conclude if the particular investment product is suitable for his own investment philosophy. For his own investment goal. For its own tolerance to risk. They do not offer a quantified measure of how its investment portfolio will behave in the future under different market conditions.

With current zero interest rates, an investor needs the help of a qualified professional advisor, who will assess the status of his portfolio before deciding to invest or restructure his portfolio.

A professional investment advisor will show the investor if the portfolio he has really is as risky as the investor believes and if it ultimately leads to the goal that the investor himself has set for his funds. And one more thing: a professional investment advisor will focus on parameters that in the long run are crucial for achieving the goal of an investor: if the investor pays too much to create and manage his portfolio.

What does portfolio analysis from XSpot Wealth mean?

The first parameter we consider is the structure of the portfolio and we assess the total risk that this portfolio has. Based on these, we show in a simple way that this portfolio is expected to affect the financial future of an investor. In this way, the investor is able to think again about whether this is the approach he wants.

The second parameter is the time parameter. We examine whether the timetable for achieving the goals has been met or whether the portfolio is off track. Further analysis will lead to the real reasons why the portfolio is lagging behind, if at all.

Finally, a wealth manager will examine in depth at portfolio performance. At XSpot Wealth we know the hidden costs of a portfolio. An investor who has different asset classes and different accounts, pays some costs which if accumulated and added over time, significantly reduce the Net Annual Return on the portfolio. In XSpot Wealth, we reduce these costs by 80%. In a low risk portfolio, this equates to consistently positive returns year after year. In a medium and higher risk portfolio, this equates to a significant increase in profitability year by year.

Absolute transparency in the investment process and in relations with investors is a fundamental principle of XSpot Wealth.

How XSpot Wealth creates Model Portfolios that generate stable returns?

A suitable investment portfolio is the one that has high diversification, which is achieved with minimal cost. In a low interest rate investment environment, the total cost of a portfolio is the key to creating an effective portfolio.

The use of ETFs by large and recognized investment firms, in addition to offering a huge spread on government bonds, corporate bonds and stocks from many sectors and different countries, also gives the flexibility for extremely low costs as the average cost of such a product reaches 0,20% when traditional products such as Mutual Funds have a cost of at least 1.0%.

Low cost allows the creation of well-designed portfolios, which offer investors the opportunity to have a stable income as well as an over- return on their capital in the long run.

6 different portfolios for any type of investor

There are six investment portfolios that investors can choose from directly, depending on their investment profile and the goals they seek to achieve. In any case, each of these portfolios is fully customizable to perfectly match the individual needs of each investor.

1. Low risk portfolio with higher return than a deposit or a Money Market product (Secure Plan)
The current and future environment of low interest rates and the actions of central banks, if ignored, will result in a saver seeing the value of his funds gradually evaporate. However, if he takes advantage of this situation with the right products, he can regain the smile of previous years.

2. Conservative fixed income portfolio plus low returns (Conservative Plan)
A small diversification of 30% in ETFs that offer higher returns (dividend shares, foreign corporate bonds) enable the investor to continue to feel the security of a low investment risk and at the same time to take advantage of long-term higher stock values and higher bond yields.

3. Balanced Plan
This portfolio is used to be called 60/40. However, at XSpot Wealth we give a more dynamic dimension to this portfolio, trying to make good use of the right time, two key assets which for the last 20 years have produced a combined average annual return of over 5%.

4. Dynamic return portfolio for long- term capital appreciation (Growth Plan)
This portfolio provides the flexibility to pick any investment product. The aim of this portfolio is the long-term increase of the invested capital. At XSpot Wealth we manage to achieve this goal, taking significantly less risk than investing in a stock index.

5. Dynamic capital growth portfolio exclusively in ESG
Investments that leave a positive mark on the environment, society, human and labor relations, are at the heart of the investment community. Over the next 30 years, this trend is expected to gather the majority of investment funds. Investors who decide to become part of this trend will enjoy significant added value in their investments.

6. High monthly dividend portfolio (High Income Plan)
There are investors, who want to receive a significantly higher monthly income, which they will use to cover part or all of their monthly expenses. At XSpot Wealth, we have analyzed hundreds of high dividend ETFs and come up with the ones that create the most profitable portfolio.

And if an investor does not have a portfolio? Or if he wants a brand new portfolio?

For us at XSpot Wealth it is a pleasure to help you build a portfolio from scratch. Because in this case we have the opportunity to "educate" the investor in our own investment philosophy. A philosophy that wants the investor to receive a steady income, but also to see his funds "work" for him.

Why choose to become a client at XSpot Wealth?

At XSpot Wealth we focus on building a relationship of mutual trust. We focus on meeting the needs of our customers and not on promoting products and services that are not useful to them.

At XSpot Wealth we understand that the only way to provide consistent returns to our investors is to continually leverage their capital, recognizing any changes in the investment environment. We measure our performance in line with the goals we set together.

Our investors live a completely new and modern investment experience. They open an investment account 100% digitally, have direct access to their portfolio even from their mobile phone and have at their disposal all the reports that could be needed (dividend payment, tax reports, etc.)

This article does not constitute and shall not be construed as a prospectus, advertisement, public offering, or placement of, nor a recommendation to buy, sell, hold or solicit, any investment, security, other financial instrument or other product or service. This document is for general information only and is not intended as investment advice or any other specific recommendation as to any particular course of action or inaction.