Forex in your portfolio

Current and potential customers often ask us what part of their assets they can best invest in Forex and, more specifically, in Mulder FX Managed Accounts. Before answering this question, we would first like to describe briefly the principles of portfolio management.

Portfolio management

The aim of portfolio management is to maintain assets and achieve the desired returns. The first thing that needs to be done in portfolio management is determining the risk that an investor is willing to take. Once this question is answered, a good combination of investment products will need to be found within the assessed risk profile. Portfolio managers can do this for you.

In choosing a portfolio manager it is important to find out whether the person or agency that will manage your portfolio actually has the same interests at heart as you. For example, a portfolio manager may receive a high commission to buy certain investment products. Is his advice to buy those products then truly independent advice? For independent advice on how to choose a portfolio manager, see Belegginsassistent.nl. This agency has analysed all portfolio managers and will determine together with you which portfolio manager best fits your wishes.

Diversification of your investment portfolio

A well-considered spread is very important in portfolio management as proper diversification of an investment portfolio reduces the risk.
You can not only choose different investment categories, but also geographically diversify your investments. Investment categories respond differently during different economic developments. If, during certain economic developments, all the investments in a portfolio move in the same direction, the impact may be quite substantial.

Percentage of your investment portfolio

Once you have chosen a number of different investment products, you need to determine the percentage of assets that should be designated to certain investments. We advise investors with a low risk profile to participate in Mulder FX Managed Accounts with only a small percentage of their assets. Investors with a high risk profile are advised to do so with about 20% of their assets. In order to ensure diversification, the Forex Managed Account of Mulder FX is a good addition to any investment portfolio.