Investment Philosophy

Our Investment Beliefs

The Maximum Wealth Investment Philosophy is based on the following key beliefs:

1. Diversification ensures smooth and less volatile returns
2. A disciplined approach is crucial to successful investing
3. Risk and return are always related
4. Investment decisions should, in the main, be left to the experts
5. Portfolios should reflect your objectives and risk profile

Diversification – "Place your eggs in different baskets carried by different people"

Diversification is a proven way of reducing uncertainty in your portfolio by spreading investments. Whilst most people understand this concept, many do not actually implement it in their investments. At Maximum Wealth Advisers we look to diversify in many ways: –

  • Across multiple asset classes
  • Across multiple investment managers
  • Across multiple geographical locations
  • Through the use of personal insurance products

A well-diversified portfolio will deliver smooth and less volatile patterns than those holding a limited spread of investments.

A Disciplined Approach – "Stick to the plan and leave your emotions out of the equation"

We believe that to be truly successful you need to be highly disciplined. It is about taking a strategic approach and avoiding all the typical mistakes that investors make which erode long term wealth.

A disciplined approach means never over-reacting to short term movements, changes or performance, which are all part of the natural investment and economic cycle.

At Maximum Wealth Advisers we believe in regular reviews and portfolio re-structuring to ensure that your portfolio provides long term results.

Risk and Return – "As investors you must always respect the risk/return trade-off"

Risk, in the context of a portfolio, refers to volatility or the degree to which investments fluctuate. Volatility and returns are always related - that is, investments with higher volatility can be expected to produce higher returns and the reverse with lower volatility. This is called the risk/return trade-off.

When we construct your portfolio we consider the risk/return trade-off by balancing volatility and expected return to not only meet your goals, but also smooth out the peaks and troughs.

Investment Experts – "Trust an Expert"

Investment decisions should be made by those who live and breathe it every day as the cost of trying to make these decisions on your own can be substantial.

A US study by research group Dalbar Inc found that over a 20-year period ending in 2010 the US share index (S&P500) returned 9.14% p.a.

The average investor received 3.8%, which means that they under-performed by 5.31% p.a. This is the difference between turning $100,000 invested into $575,000 or $212,000 a difference of $363,000 over 20 years.

Tailored Portfolios – "Customised to suit your objectives"

At Maximum Wealth Advisers we believe that portfolios should be tailored to fit your specific circumstances, taking into account your goals and objectives and your views on risk/return. We will continue to review and revisit your investment structure to accommodate any changes to your personal and financial goals and needs.