Designed For You
No single investment portfolio is right for everyone. We work closely with each client to establish an appropriate investment profile, and then we design a portfolio to meet their specific needs.
Equity Versus Income Allocation
When it comes to financial investing, not all risk is bad. In fact, it is not possible to get a return on a financial investment without assuming some level of risk. Over the long-term with a sound investment strategy, your return will be proportionate to the risk you take.
By balancing your equity investments (i.e. your investments in the stock market) with income investments (e.g. guaranteed investments such as GICs), you can control your risk. If your equity exposure is overweight, you may be assuming more risk than is appropriate for your personal situation. If your equity exposure is underweight, you may be missing out on an opportunity for better returns.
We help you to balance your equity allocation, and we reevaluate your equity exposure as your circumstances change.
Style Allocation
There are two main ways to classify stocks. By looking at company size, stocks can be separated into "small-cap" or "large-cap". By looking at the ratio between company book value and the current stock price, stocks can be divided into "value" or "growth" categories.
Historically, large-cap and growth have tended to underperform small-cap and value, yet most mutual funds tend to overweight large-cap and growth stocks.
Small-cap and value stocks tend to carry more risk and provide higher returns. Polaris Financial portfolios provide a broad market exposure with a tilt towards value and small-cap stocks. This tilt, combined with a long-term buy and hold strategy, should provide higher returns in the long-run.