The rapid development of digital wealth platforms has made investing much easier for individual investors. Templated, multi-fund portfolios offered by banks, roboadvisors and wealth platforms have improved access to investing, allowing investors to choose products based on their goals and risk tolerance without the tedious process of securities selection. However, as an investor, you still have to make a choice: which products are most likely to get you to your goals? Say, two equities-only portfolios offered by two different wealth companies may appear the same on the surface, but nuanced differences like constituents, degree of diversification, and fund manager investing styles can yield very different results. And if you are already invested, how do you assess whether your portfolio is doing what it is supposed to do—getting you on track to your goals?
Is the highest-returning portfolio the best portfolio? Think again
A common mistake that investors make is to…
