How does Selma decide on my optimal investment plan?
Is a 28-year-old marketing consultant supposed to invest her money the same way as a 55-year-old university professor? 🤔
… definitely not!
Every life situation is different. And as there are so many possible situations you could go through, finding out which criteria are the most important ones when choosing investment products is difficult.
Selma looks at your situation and by combining what she has learnt about you with her experience of the financial markets and data about many different ways of investing, she can choose investment products specifically for you.
With Selma you don’t have to choose from pre-existing, standardized portfolios, but you get your own personal mix of investments.
This way you can use your savings efficiently, while not having to actively put energy into managing them.
In our Invest 1-on-1 series, we look at how investing money with Selma works.
1. Selma adapts new investments to your current financial situation.
Automatically Selma excludes investment areas in which you already are active and therefore take some risk. This means that if you already own real-estate, Selma will invest more in different areas in order to keep the mix of your investments in balance.
This way, the risks you take will always mirror your complete financial life and not only this one portfolio with Selma.
2. She finds the perfect mix between growth & stable investments.
Investments are often divided into "growth" and "stable" investments. Which part of your savings you should invest into riskier "growth" investments, that potentially yield higher return (stocks, private equity, loans), depends on various factors. It depends on your existing investments, your future savings potential and of course also your own attitude towards risk. 🤓
Based on all data she gets to know about you, Selma calculates the perfect distribution of investment products for your money.
3. Selma composes the mix out of global investment products.
In order to forego dependencies on certain geographic financial markets, companies or countries, Selma makes sure to compose your mix using global products from all over the world. This makes sure that your risk is tied closer to the global market instead of a fluctuating markets of only one economic region.
4. She constantly monitors the markets and keeps the perfect time to start buying in mind.
Selma is following prices on the stock markets and constantly checks if it’s the right time to purchase products. If certain financial markets become expensive, Selma automatically invests less, but invests more in at that point cheaper markets. This way Selma reduces your risk of losing money once markets change quickly. Furthermore, Selma invests step-by-step, to make sure the full amount of your investment money is invested depending on the financial situation on one day.
In case you’d like to know how Selma measures if markets are expensive or cheap to invest in, you can read more here.
5. Selma looks at 1000 investment products for you.
Selma compares more than 1000 investment products for you and then chooses the most efficient ones. She makes sure that those also fit with your tax situation - it’s important that you don’t miss out on money because of expensive fees in the end. And of course this means, that you don’t have to research all ETFs in this world 😉