PM Strategies Losing Investor Confidence – What Caused Recent Outflows?

Portfolio Management Services (PMS) have long been a preferred choice for wealthy investors in India. With customised strategies, personalised attention, and potential for higher returns than mutual funds, PMS once stood out as the “personal chef” of wealth management. 

Yet, despite their premium positioning, the past few quarters have seen significant investor outflows from PMS strategies. What went wrong? Why are investors pulling back from what was once a high-growth investment segment? 

In this blog, we explore the underlying causes of this dip in investor confidence, how portfolio management companies in India are responding, and what this means for investors. 

Understanding PMS And Its Appeal 

Unlike mutual funds where money is pooled, PMS provides each investor with a dedicated portfolio tailored to their risk appetite and goals. Some key features that made PMS attractive include: 

● Customisation: Investment plans aligned with individual goals. 

● Transparency: Direct ownership of stocks and securities. 

● Potential for Higher Returns: Managers can take concentrated positions. 

● Prestige Factor: Long considered an HNI-exclusive product. 

However, as markets evolve and investor awareness increases, these strengths are now being re-examined. 

Recent Outflows From PMS – The Numbers 

According to SEBI’s 2023–24 data, PMS assets under management (AUM) touched an all-time high of over ₹32 lakh crore. Yet, inflows have been uneven. 

● Client numbers have stagnated, failing to recover fully post-COVID. 

● Quarterly data shows selective outflows in strategies that underperformed benchmarks. 

● PMS companies with aggressive bets in mid- and small-caps saw sharper redemptions compared to conservative strategies. 

This suggests that while PMS remains a large industry, investor faith in certain strategies has weakened. 

What Is Driving The Loss Of Confidence? 

1. Performance Gaps vs Benchmarks 

Several PMS funds failed to beat indices consistently. While top performers delivered alpha, many lagged behind mutual funds, creating dissatisfaction. 

2. High Costs and Fee Structures 

PMS fees typically include management fees (1.5–2.5%) and profit-sharing. In a low- return environment, these costs erode investor gains, leading to comparisons with lower-cost mutual funds. 

3. Market Volatility 

The sharp swings in 2022–24, especially in mid-cap and small-cap segments, exposed PMS strategies with concentrated bets. Investors preferring stability began moving towards safer instruments in 2025 or 2026. 

4. Transparency And Reporting Concerns 

Despite SEBI’s regulations, investors feel reporting in PMS is less frequent and harder to interpret than in mutual funds. This lack of clarity impacts trust. 

5. Rising Competition From Alternatives 

Products like AIFs (Alternative Investment Funds), passive ETFs, and even global investing platforms have attracted HNIs seeking diversification. 

The Bigger Picture – Shifting Investor Behaviour 

Investor psychology has evolved. Earlier, PMS appealed to those chasing exclusivity and higher alpha. Today, investors are more cautious, preferring: 

● Cost-efficiency over prestige. 

● Liquidity and transparency over concentrated high-risk bets. 

● Diversification across asset classes. 

This behavioural shift is a big reason for recent PMS outflows. 

How Portfolio Management Companies In India Are Responding 

Leading PMS providers are: 

● Tweaking strategies towards more balanced allocations instead of extreme bets. 

● Lowering fee structures or offering performance-linked models. 

● Enhancing digital dashboards for transparency. 

● Diversifying offerings by launching hybrid PMS-AIF models. 

However, rebuilding trust will take time and consistent performance. 

The Dezerv Perspective 

At Dezerv, we believe investor trust is built on: 

● Transparency: Simple, jargon-free reporting. 

● Evidence-based strategies: Focus on risk-adjusted returns rather than chasing headlines. 

● Access: Helping investors understand the trade-offs of PMS versus mutual funds or AIFs. 

By keeping client-first principles at the core, portfolio management can still play a valuable role in a high net-worth investor’s wealth journey. 

Frequently Asked Questions (FAQ) 

Q1. Why are investors pulling out of PMS now? 

Outflows are driven by underperformance of certain strategies, high costs, and a shift in investor preference towards more transparent and cost-effective products. 

Q2. Is PMS still better than mutual funds? 

Not always. While PMS offers customisation and flexibility, mutual funds often outperform after adjusting for costs. The right choice depends on your portfolio size, risk appetite, and goals. 

Q3. What is the minimum investment in PMS? 

In India, the SEBI-mandated minimum is ₹50 lakh. Q4. Are PMS fees justified? Fees can be worthwhile if a PMS consistently beats benchmarks net of costs. However, many investors are questioning whether this value is being delivered. 

Q5. Should I consider PMS in 2025? 

Yes, if you have a significant corpus, a high-risk appetite, and prefer personalised strategies. Otherwise, diversified mutual funds or AIFs might be more efficient. 

Conclusion 

The recent outflows from PMS highlight a trust and performance gap. While portfolio management companies in India are adapting, investors are demanding more value for the high fees charged. 

For investors, the key takeaway is this: Evaluate PMS not by prestige, but by alignment with your goals, costs, and risk tolerance. 

At Dezerv, our approach is to help you cut through the noise, focus on evidence, and craft strategies that protect and grow your wealth sustainably.

5 Strategic Benefits Of Professional Investment Advisory Services

Navigating Market Complexity With Advisory Expertise 

Modern markets are a battlefield marked by volatility and shifting paradigms. Geopolitical events, fluctuating interest rate cycles, and sector rotations continually rewrite the script in unpredictable ways. For investors without specialized insight, this can mean walking a tightrope without a net. Consider this: The CBOE Volatility Index (VIX) surged over 43% in a single month during 2022, underscoring the chaotic nature of today’s investing climate. In such an environment, relying on guesswork or gut feelings is both reckless and futile. Professional investment advisory services provide not only a navigator but also a strategist who understands the game’s unwritten rules. Expertise isn’t optional—it is your defense mechanism. 

Implementing Risk Management In Investment Advisory 

Risk isn’t a number; it is a living, breathing force that evolves with every market tremor. Leading advisors don’t just define risk—they model it, dissect it, and pressure-test it. Tools like Monte Carlo simulations and scenario analysis expose portfolio weak points before real-world crises emerge. Tactical drawdown controls ensure shocks are dampened and recoveries are swift. “Risk management in advisory processes” isn’t just jargon; it is a disciplined, measurable practice. The difference between surviving and thriving often boils down to these preemptive measures. Without them, investors are flying blind in a storm. Professional advisors make risk a weapon, not a weakness. 

Tailored Portfolio Design By Financial Advisers 

Cookie-cutter allocations? Leave those to dime-a-dozen robo-advisors. A truly bespoke portfolio aligns with your goals, your timeline, your life. Top-tier advisors recalibrate your exposure across equities, fixed income, alternatives, and even untapped geographies. Diversification isn’t just smart—it is mandatory. Imagine this: A 60-year-old client shifts from growth-heavy tech equities toward a balanced blend of municipal bonds and dividend-paying blue chips to fund a comfortable retirement. That is the power of tailored rebalancing. It is not about chasing returns; it is about engineering financial outcomes. Advisors craft portfolios as surgeons wield scalpels—precise, deliberate, and client-specific. 

Tax-Efficient Allocation Within Advisory Frameworks 

Investing doesn’t exist in a vacuum. Taxes, often ignored by amateurs, have the power to erode gains with ruthless efficiency. Professional advisors integrate tax-saving strategies directly into portfolio design. Tactics like tax-loss harvesting, municipal bond ladders, or leveraging charitable giving vehicles aren’t just financial minutiae—they are foundational pillars. Did you know a well-executed tax-efficient strategy could save up to 1-2% in annual portfolio drag? That is the difference between compounding wealth and running in place. Ignoring tax implications in your investments is like pouring water into a bucket riddled with holes. Advisors ensure your wealth is built, not bled. 

Behavioral Insights For Advisory Relationships 

You are your own worst enemy when it comes to investing. Recency bias, loss aversion, overconfidence—the list of cognitive traps is endless. This is where experienced advisors serve as both guides and guardrails. They don’t just manage portfolios; they manage reactions. Rational decision-making and disciplined rebalancing schedules become the antidote to emotional investing. Quarterly performance workshops or personal financial reviews? Not just useful, but essential to keep clients focused on long-term goals. Human emotion is predictable. Advisors know it, plan for it, and neutralize it. Left unchecked, your biases could sabotage decades of progress. 

Leveraging Advisory Tech In Wealth Planning 

Technology is reshaping the advisory landscape, and the best advisors embrace it as an ally. With AI, big-data analytics, and interactive dashboards, clients gain unprecedented insights. Scenario testing, real-time portfolio monitoring, and automated alerts bridge the gap between decision-making and execution. Consider hybrid robo-advisor integrations—pairing digital precision with human expertise. This is innovation with purpose, not gimmickry. In a world driven by algorithms, professional advisors harness tech to empower, not replace. The result? Efficiency, clarity, and foresight rolled into one seamless advisory experience. 

Streamlining Collaboration Within Advisory Teams 

Clarity in communication. Proactive engagement. These aren’t just buzzwords; they are the backbone of successful advisory relationships. Best-in-class teams leverage regular video calls, standardized reporting templates, and shared goal-tracking tools to ensure every stakeholder stays informed and aligned. To explore tailored solutions, connect with investment advisors today. Transparency isn’t a secondary consideration. It creates trust, which is the bedrock of long-term success. The right advisors aren’t just collaborators; they are your financial co-pilots working with you, not in silos. 

Charting The Next Steps In Your Investment Advisory Journey 

Where do you go from here? Start with these three actionable steps: 

- Schedule a comprehensive review of your current risk profile. 

- Request a demo of advisory technology tools for better portfolio insights. 

- Evaluate your tax-planning impact alongside your financial goals. 

Compare your current setup to these strategies. If gaps or inefficiencies exist, why accept anything less than excellence? The smartest move forward begins with a single decision to demand better. Will you?

Hedging vs. Speculating Traders Dilemma

The financial markets are dynamic, unpredictable, and full of opportunities for traders seeking to profit from price movements. However, navigating the complexities of these markets requires a deep understanding of various trading strategies. 

Among the most fundamental and often debated approaches are hedging and speculating. While they both involve making decisions based on market trends and future price movements, their purposes, risk profiles, and outcomes are vastly different. 

Understanding these differences is essential for any trader looking to make informed decisions and manage their risk exposure, whether they own individual stocks or ETFs such as those from VegaShares. 

Defining Hedging 

Hedging is a risk management strategy employed to protect an investor or a business from adverse price movements in an asset or liability. Essentially, it acts as an insurance policy for traders who wish to safeguard their investments from market volatility. The primary objective of hedging is not to profit from market fluctuations but to mitigate potential losses that could arise from unfavorable price movements you can monitor on Dividend Vision website. 

The concept of hedging has been around for centuries, particularly in industries where price volatility can dramatically impact profit margins, such as agriculture, energy, and finance. For example, a farmer may hedge against the potential decline in crop prices by using futures contracts. If the price of crops falls, the farmer's futures contract ensures they can still sell their produce at a predetermined price, protecting them from the financial loss caused by the price drop. 

Hedging techniques generally involve the use of financial instruments such as options, futures, and forward contracts. These instruments allow traders to take positions that offset the potential losses in the underlying asset. For instance, an investor holding a large stock position might buy put options on that stock as a way to hedge against a potential decline in its price. In doing so, if the stock's price falls, the value of the put option increases, offsetting the loss in the stock’s value. Read this content for more information. 

Defining Speculation 

Speculation, on the other hand, is the act of buying or selling financial instruments with the expectation of profiting from future price movements. Unlike hedging, which is focused on risk reduction, speculation is driven by the desire for high returns through capitalizing on price volatility. Speculators actively seek out opportunities where they can predict price movements and take positions that will generate profit. 

Speculation is not a new phenomenon in the financial world. Traders have been speculating on everything from commodities to stocks for centuries. In modern financial markets, speculation is often associated with high-risk, high-reward trading strategies, such as day trading, forex trading, and cryptocurrency investments. Speculators rely heavily on technical analysis, market trends, and predictions about future price movements to make their decisions. 

The most common speculative strategies involve using leverage to amplify potential gains. For example, a speculator might purchase a large number of stock shares on margin, hoping that the stock price will rise significantly. Alternatively, a trader might use options or futures contracts to speculate on price movements without having to buy the underlying asset itself. These instruments allow speculators to take large positions with relatively small amounts of capital. 

Hedging vs. Speculating: Key Differences 

The fundamental difference between hedging and speculating lies in their approach to risk. Hedging is primarily about reducing risk, while speculating is about embracing risk in the hopes of achieving higher returns. Traders and investors must assess their risk tolerance and financial goals to determine which strategy suits them best. 

One of the most important aspects of hedging is its role in protecting against adverse market movements. When traders or businesses hedge, they are essentially saying, “I want to reduce my exposure to potential losses, even if it means sacrificing potential profits.” In contrast, speculation involves taking calculated risks, with the expectation that market movements will be favorable, thus generating returns. 

The instruments used in both strategies also differ. Hedging typically involves using options, futures, and forward contracts to create positions that offset potential losses in the underlying asset. Speculators, however, often rely on a variety of financial instruments, including stocks, forex, CFDs (Contracts for Difference), and derivatives, to make profits from price fluctuations. 

Understanding The Trader's Dilemma: Hedging vs. Speculating 

For many traders, the decision between hedging and speculating comes down to the risk- return trade-off. Hedging is a conservative strategy, offering protection against potential losses but limiting the upside potential. Speculation, on the other hand, offers the opportunity for high returns but at the cost of taking on significant risk. 

This risk-return trade-off is heavily influenced by a trader’s risk tolerance. A conservative investor might choose to hedge their positions to protect against downside risk, while a more aggressive trader might lean toward speculation, seeking to capitalize on market fluctuations. The dilemma lies in balancing these competing desires: the need for stability versus the desire for potential reward. 

Conclusion 

Hedging and speculating are two distinct strategies with unique purposes and outcomes. While hedging is focused on risk reduction and stability, speculation embraces risk in pursuit of higher returns. Both approaches have their advantages and disadvantages, and the choice between them depends largely on a trader’s risk tolerance, investment goals, and market knowledge. 

Understanding the differences between these strategies and carefully considering your personal financial situation will allow you to make more informed decisions and navigate the complexities of the financial markets with greater confidence.

Futures Trading 101: Understanding The Basics

Futures trading is a derivatives market that allows traders to speculate on the future direction of an asset's price, such as commodities, currencies, or stocks. It is similar to day trading but requires more focus and discipline due to its longer-term nature. Before getting involved in futures trading, it is essential to understand the basics of how these markets work. 

Basics Of Futures Trading 

Leverage refers to using borrowed money from a broker or other third party to increase your buying power. For example, if you invested $10,000 into a futures contract and used the leverage of 10:1 (which means borrowing ten times more than the amount initially invested), your total buying power would be $100,000. Leverage can increase profits substantially, but it also increases risk accordingly. Therefore, traders should understand the concept of leverage and use it responsibly. 

Another critical point to understand about futures trading is that there is no central exchange for these markets, meaning traders must transact on multiple exchanges to get the best prices. It can add complexity to the process as different exchanges may have different fees and margin requirements, which affects how much money a trader needs to put down to enter a position. As such, traders should look into how much capital they need for each trade before executing any transactions to minimise losses due to miscalculations or unforeseen price movements. 

Using a broker when trading futures is advised for most traders, as brokers like Saxo can provide access to multiple exchanges and offer advice on managing trades. However, these services typically come with a fee, so it is essential to research different brokers to find the best service that fits your needs. 

In addition to understanding the concept of leverage and knowing how much capital is required for each trade, traders should also pay close attention to margin requirements. Margin refers to the amount of money that must be maintained in an account as collateral for a given position. 

When a trader's account falls below the minimum margin requirement, they may face a "margin call" from their broker requiring them to immediately deposit additional funds or liquidate all their positions. As such, traders must understand their brokerage's margin requirements before entering trades. 

Traders must understand the various futures contracts available in these markets. Several types include mini contracts, quarterly contracts, and commodity futures. Mini-contracts are a minor type of contract and are typically used for smaller investments. Quarterly contracts have longer expiration dates and are more volatile than mini contracts. 

Commodity futures refer to index-based contracts that track the price of a larger basket of commodities like gold or oil. Each contract type has its advantages and disadvantages. Thus traders should research what suits their investment goals before entering any trades. 

What Are The Risks? 

Futures trading in Singapore can be a lucrative investment opportunity, but it is essential to understand the risks involved before diving in headfirst. As mentioned, leverage can increase profits substantially but also increases risk accordingly. If the price of an asset moves in the opposite direction of a trader's position, the losses can quickly add up and exceed the initial investment. 

Furthermore, suppose a trader's account falls below their broker's margin requirements. In that case, they may face a "margin call" from their broker and be required to liquidate their positions or deposit additional funds to maintain their positions. 

In addition to leverage-related risks, counterparty risk is associated with futures trading due to its OTC (over-the-counter) nature. In other words, when traders enter into trades with brokers or other third parties, they are taking on the risk that these counterparties will not fulfill their end of the contract or default on payments if applicable. It is, therefore, important for traders to research and vet potential counterparties before entering into any agreements. 

Traders should remember that market liquidity can dry up during volatile periods, which may lead to wide bid-ask spreads and significant slippage when entering/exiting trades. This volatility can cause large price movements, resulting in significant losses if not managed properly. For this reason, traders need to keep an eye on market conditions and adjust strategies accordingly based on changes in market conditions. 

Conclusion 

Understanding the basics of futures trading is essential for anyone looking to enter this market as an investor or trader. Key concepts such as leverage, margin requirements, and different types of contracts should all be studied in depth before executing any transactions. With proper preparation and a sound strategy, futures trading can be profitable.

The Beginner's Guide To Understanding Trading

Trading seems to be everywhere these days, one can't open a web browser without promises of huge trading successes. However, as with any new venture in life, there are things to consider and keep in mind when starting up. 

The online world is fast-paced and moves with the times, the same applies to trading commodities and securities. The key is to know the basics, and know them well. Couple knowledge with a good eye for finance and analytical thinking skills, and you may have a future in trading. 

Keep in mind that each trading type comes with its very own set of rules and regulations, and while the premise may be the same, there are a myriad of things to consider beyond merely buying low and selling high. This article will introduce you to a few different options in the trading world so that you can ultimately make an informed decision in the market. 

Staying Ahead Of The Trend 

Trend is one of those words that the western world is all to familiar with, and it is defined as a general direction in which something is developing or changing. This definition rings true for trading too, namely trend trading, which is a popular form of trading that involves traders leveraging existing market trends to execute profitable trades. 

In other more understandable words, traders estimate the direction that prices are moving in, based on where they were in the past. It's a prediction above all, but can be fruitful if you are gifted with numbers, patterns and meticulous monitoring of charts and data. 

There are tools to aid in trend trading, namely a stochastic oscillator which is the most well-known tool that compares a particular closing price of a security to a range of its prices over a certain period of time, meaning that it uses a scale to measure the degree of change between prices from one closing period to predict the continuation of the current direction trend. It aims to give you information over a specific period of time so that you can deduce what the next move may be. 

However, since the market is a beast that plays by its own rules and changes at the drop of a hat, the best thing to do is combine knowledge and experience. It may take some time to become acquainted with the ins and outs of trend trading, but it is well worth putting time and effort into it if you can see yourself in this industry. 

Good As Gold 

Gold is one of those commodities that seem extra exciting, kind of like trading with kings in the olden days. The same as with trend trading, or any form of trading for that matter, you need to know the basics really well if you are planning to trade gold and aim to make a profit. 

Gold falls under the commodities trading umbrella, which refers to an economic good, in other words something of financial value and usually a resource. Commodities usually involve raw materials and not manufactured goods, for example cocoa, sugar and fruit. The other side of the coin and still under the same umbrella is hard commodities, namely things that are mined, such as gold and oil. 

A big aspect to consider in commodities trading is whether you can handle risk and enjoy the thrill of it, because some consider it a risky investment mainly due to the supply and demand of these products being affected by events that are difficult to predict, like harvesting conditions, weather, geopolitics, demand and supply, trade regulations as well as natural and human-made disasters. 

These are only a few of the possible influences that can affect prices, and gold trading also requires sound knowledge of geography, finance, inflation and many other things. Keep this in mind when you make your decision. 

A Full Day Of Trading 

To be fair, day trading sounds a little less challenging and risky than it actually is. It gives the impression of doing a hard day's work and then leaving the office happy. But this is not always the case, especially if you don't make sound decisions under extreme time pressure. 

It is human nature to try and maximize money, to let our money work for us and not the other way around. Put simply, day trading involves a trader actively buying securities, like gold or cryptocurrencies, and selling them in the course of the same day. It is essential for any future day trader to know what kind of person they are and whether they can handle the stress of purchasing goods and monitoring their fluctuation to the minute. 

It can be an exciting venture if your nervous system can take it and you have a good feeling for the market and don't mind stressful situation. Believe it or not, there are people who thrive under pressure and even need it in a way. Learn everything you can about day trading before you give it a go. A good option is also to try a free demo account so that you don't use your own money right off the bat. 

Right next to finance as a cornerstone of trading, is the knowledge of oneself. A good trader knows when to buy, when to sell and when to cut their losses. They also stay up to date on all the latest news and have a keen interest in anything economy related. Trading is not a get-rich-quick kind of activity, it's a serious business with serious risks. Take your time in learning about different trading methods and always trade responsibly.

3 Tips For Investing When Inflation Is High

Investing in the market can be stressful enough in good financial conditions. You have to be aware of your particular wants, needs, and risk tolerances to be comfortable with your strategy. However, when the economy is experiencing turmoil, investing can become even more stressful. Economic factors that can affect the markets include such things as unemployment rates, international economic happenings, and inflation rates. It could be the beginning of a long bear market so you need to have a smart strategy in place.

However, don't let economic fluctuations of these types completely discourage you. For example, there are companies that people can invest in that may not be as affected by high inflation as others. 

The following are a few of these investment strategy options. You can do your research and even consult an expert advisor to find more beyond these 3 inflation investing pieces of advice.

1. Durable Consumer Goods Companies

Some companies manufacture goods that people simply can't do without. Regardless of high inflation, consumers will continue to purchase toilet paper, paper towels, facial tissue, and soap. These things nearly always make it into the household budget regardless of price. In addition, companies that produce non-perishable foods such as canned goods, standard condiments, and pasta are going to be less likely to feel the effects of inflation on their bottom lines. 

Portfolio managers such as Larry Creel can assist in narrowing down the list of these companies. Expert advice comes in handy, as these professionals may have been through similar economic circumstances, and know which companies fared the best.

2. Healthcare Investment Trusts

Another item unlikely to get cut from the household budget is healthcare. While prices of medical care and procedures may raise during times of inflation, people are more likely to go ahead and spend their money on healthcare than, say, that new RV they have been eyeing. Those already undergoing treatment are not likely to discontinue treatment solely because prices go up. 

In addition, healthcare and pharmaceutical companies will likely continue research and development projects during times of inflation. This fact makes them appealing options. Investing in trusts is a good way to spread the risk of investing out among several entities. 

3. High-Quality Companies

Here again, is where the advice of an expert may come in handy. There are companies out there that have already weathered harsh economic conditions such as high inflation. Experts will recognize these companies and be able to steer you in their direction. Just because you have seen a bunch of their advertisements on TV or billboards doesn't ensure that a company is of high enough quality with which to invest during unstable times. 

Utilizing an investment advisor who has weathered these storms before can serve you well in weathering the current climate.

Final Thoughts On Inflation Investing

Uncertain economic conditions such as periods of high inflation can make investors wary. However, it is rarely a good idea in any environment to cease investing at all. Instead, do your research and consult with experts to determine the best strategy for the market as it changes during inflation, stagflation, hyperinflation, or subsequent deflation. 

While there are pitfalls to avoid in each situation, there are also options that can help you reach your long-term investment goals. Remember that investing is a marathon and not a sprint. Rome wasn't built in a day, and neither will your perfect profitable portfolio!

What To Think About Before Making Investment Decisions

Investing can be an excellent way to meet your financial goals, but it is important to make well-informed choices and fully understand the risks involved. You should also be aware of how taxes might affect your returns. Researching your options can help you avoid making decisions based on emotion or recent market news. It also helps to use an SIP calculator or other software program to help with your investments for more accurate calculations.

This article will cover five things to consider before making investment decisions. Read on below for financial considerations and investing insights to help manage your money masterfully.

Your Investment Goals

Before making any investing decisions, it is important to understand your financial goals. Whether you are saving for a retirement, a new home or another major life event, it is important to be clear about what you want to achieve with your investments. It can help break your investment goals into short-term and long-term categories. Then, you can determine how much risk to take to meet your goals. 

It is also helpful to estimate how much your goals will cost. It will allow you to compare them to the available investment opportunities on your radar screen. It is a good idea to revisit your investment goals regularly. For instance, David Adelman has been clear about his investment goals. Thus, he succeeded in reaching them. Major life events like marriages, divorces, births and deaths should be considered an opportunity to reassess your priorities. You should also review your goals annually to account for changes in inflation and other variables.

Your Risk Appetite

Understanding your risk appetite can help you make the most of your investments. It is the financial risk a person or organization will take to achieve their goals. Many factors influence risk appetite, including the context, financial resources and management structure. It differs from a risk assessment considering a given risk's maximum impact and likelihood. It is also more qualitative than quantitative. Determining risk appetite isn't a one-time task and should be regularly reevaluated, especially when there are changes in the company context. For instance, departmental risks may need to be reviewed based on the company's strategic direction. In this case, a department with high chances would need to adjust its processes to ensure the company's goals are being met.

Your Time Frame

It is important to consider how long you plan on keeping your investments. It will help you decide how much risk is appropriate for your situation. For example, if you are looking to access your money within one year, investing in something that could see significant fluctuations in value may be better. It may also be a good idea to diversify your portfolio to spread your risk across different types of investments. It will minimize your exposure to market volatility and other hazards. Remembering that certain assets may be taxed differently is worth remembering so you know the implications before deciding. For example, gains on shares held for less than a year are usually taxed at higher rates than those held for more than a year. Be sure to speak with a financial advisor to get the latest taxation rules and regulations before making an investment decision.

Your Liquidity

Liquidity is important when making investment decisions because it represents how quickly and easily you can convert an asset into cash. The higher the liquidity, the more valuable it is. Money is the most liquid of all purchases, followed by investments like treasury bills and money market accounts. These investments can be converted to cash quickly without impacting their market price. A company's liquidity can be measured using acid tests, current and cash ratios. These metrics compare the company's existing assets (cash and other liquid investments) against its current liabilities, which include debt obligations. 

A company may need to make equipment investments to keep up with the rising demand for its goods or services, but the consequent rise in fixed assets may reduce its liquidity. In this case, the company should seek advice from an accountant to develop a sound investment plan that balances liquidity with growth opportunities.

Copy Trading: Profiting From The Wisdom Of The Crowd

Copy trading is a powerful tool for both novice and experienced investors to leverage the collective knowledge of successful traders. This article will explore the core concepts of copy trading, its benefits, and how to get started. We will also highlight the benefits of listening to FX brokers that offer copy-trading services, making it easier for you to embark on this exciting journey. 

What Is Copy Trading? 

Copy trading, often referred to as social trading or mirror trading, enables you to replicate the trading decisions of seasoned investors. Instead of making independent choices, you can opt to follow and automatically mirror the trades executed by these proficient traders. Here is a breakdown of the process: 

Selection: Start by selecting a trader whose strategies align with your investment goals and risk tolerance. Many copy trading platforms provide comprehensive trader profiles, including their trading history, performance, and risk levels. 

Allocation: Once you have chosen a trader to follow, allocate a portion of your capital to copy their trades. This allocation is typically a percentage of your total investment portfolio. 

Automatic Replication: From this point forward, whenever your chosen trader initiates, modifies, or closes a position, your account will automatically replicate these actions in proportion to your allocated funds. 

Real-Time Monitoring: You can monitor your account in real-time and have the flexibility to stop copying a trader or adjust your allocation at any time. 

Benefits Of Copy Trading 

Why is Copy Trading so popular: 

Accessibility: Copy trading opens the door to financial markets for individuals with limited experience or time to dedicate to trading. You don't need to be a trading expert to participate. 

Diversification: By copying multiple traders with diverse strategies and assets, you can diversify your portfolio effectively, spreading risk and potentially enhancing your chances of success. 

Learning Opportunity: Copy trading serves as an educational tool. As you follow experienced traders, you can learn about various trading strategies, risk management techniques, and market analysis. 

Time Efficiency: It saves you the time and effort required for in-depth market research and analysis. You can participate in the markets without dedicating hours to monitoring price movements. 

FX Brokers Offering Copy-Trading Services 

To engage in copy trading effectively, you will need to find a reputable FX broker that offers this service. Here is how to start: 

Research: Begin by researching FX brokers that provide copy-trading services. Look for brokers with a solid reputation, regulatory compliance, and a user-friendly platform. 

Compare Platforms: Compare the features and capabilities of different copy-trading platforms. Consider factors such as the selection of traders, fees, and ease of use. 

Regulation: Ensure that the chosen broker is regulated by a reputable financial authority. Regulation helps protect your funds and ensures a fair trading environment. 

Demo Account: Many brokers offer demo accounts for copy trading. Utilize these to familiarize yourself with the platform and practice copying trades without risking real money. 

Select Traders Carefully: When choosing traders to follow, analyze their performance, trading strategies, and risk profiles meticulously. Diversify your choices to spread risk. 

Risk Management: Set clear risk management parameters for your copy-trading activities. Determine the maximum amount you're willing to allocate to a trader and consider using stop-loss orders. 

Copy Trader Conclusion

Copy trading is a revolutionary way to tap into the collective expertise of successful traders. Approach copy trading with a well-thought-out strategy and a commitment to continuous learning for the best results.

5 Tips To Get Your Shareholder Management On Track

Your business project is ongoing, you made the right decisions, and your shareholders have been recognized. What should you do next? It’s never too late or too early to improve your relationships with your shareholders. Just because they’re here, doesn’t mean that they’ll stay. So, it’s crucial to engage best with them, and make them stay for as long as possible. 

Shareholders, also known to stockholders, as people, institutions, or companies that own another share of a business's stock, known as equity. 

Understanding shareholders – a single shareholder can own and control at least 50% of a business capital stock. Shareholders are essential to a company, sometimes. So, it’s essential to also create a strong and beautiful bond with your shareholder. That’s also called a positive shareholder. A negative shareholder is someone who can not only delay your projects but also can cause a bad reputation to your company. But if you struggle to improve your relationship with your shareholder, help them understand better your projects, and include them in the process, you will experience better outcomes. 

Most companies are constantly seeking new ways to improve relationships with their shareholders, so here’s a list of 5 top tips on how to communicate with your shareholder. 

1. Begin The Conversation Early, So You Can Win Your Shareholder’s Trust 

The goal for a shareholder is to hear about your project. So, begin the conversation early, and try to build trust. If a shareholder ever feels left out of the process, they might even spread the word that your company is not reliable, leaving you unhappy, and with a bad reputation. Help avoid this situation by making a list of shareholders you might need in your company, and try to engage with them as soon as possible. Showing respect by listening to their opinions will make them feel included in the process, so you’ll gain their trust. 

2. Consider Developing A Schedule With Shareholders 

Creating a shareholder agreement means that you will create a document, which is essential for any company that invests money. Shareholder management simplified – use a software tool that will help you manage your company in many ways. Onboard your team, import your company data and begin profiting. A shareholder agreement includes details of the corporation, so no one experiences confusion and everybody knows their rights from the beginning. 

3. Eliminate Surprises 

Do you know someone who likes surprises at work? Pretty much no one and neither do your shareholders like surprises. It means that you must pledge to eliminate as many surprises as possible on your projects. The more multifaceted the project is, the more needed will be for alteration. So, be sure to collect agreement early ahead on how potential changes will be handled. Make sure you let your shareholders know right from the beginning that things might not go according to the plan. 

Both of you must be open to ideas and bring suggestions to the table to solve the potential problems. It’s also useful to ensure that the vision for your project is noticeable and assessed regularly, to avoid failure. 

4. Be Honest 

It’s impossible to create a great relationship with your shareholder if you don’t build trust. Developing trust means that you should be transparent and honest with your project plans. Don’t try to hide things because eventually the truth will be found out. That’s not going to be an easy thing to get out of. It is worth taking the time to communicate with your shareholder and be honest about your ideas. Effective communication and honesty are essential with shareholders in any type of business project. 

Being honest and open-minded with your shareholder will make them happy to be the same with you. Shareholders appreciate honesty and cherish the opportunity to assist in a project change before the situation drastically escalates. You can’t avoid dealing with risks and issues, but you can control how to respond to them. Regardless of the challenges in your relationships with your shareholders, remain positive and you will find a solution for everything. 

5. Listen To Your Shareholders’ Opinion 

Make an effort to listen to your shareholders what they have to say. Try to understand their point of view before pointing out your opinions. Understanding your shareholders’ needs and wants it’s a win- win. Built trust and respect – it is the key to becoming professional and building a reputation. You must work hard to maintain that reputation, as it can be lost very quickly. 

The better the relationships with your shareholders, the more likely you are to overcome challenges. Be open to shareholders’ ideas, it might be the solution you seek. 

The Bottom Line 

Improving your relationships with your shareholders is a continuous effort, but it is an excellent way to reduce risks. Challenges might be encountered, but if you built a strong relationship with your shareholders from the beginning, you will experience favorable results. If any red flags occur, your shareholder might become problematic. 

Signs that indicate you’re dealing with the wrong shareholder: 

● Poor communication 

● They don’t share the same sense of emergency 

● They might be rude and uncooperative with clients for no logical reason 

● They might not necessarily be confident about your project 

When dealing with difficult shareholders, be sure to watch them closely. Figure out what motivates them and expose interest in helping them. Make an effort to listen to what they have to say, and if you both don’t commit to an agreement, then chances are that you should move to the next shareholder. 

Communication is perhaps the most important culture. Ultimately, shareholder management software is all you need to help your organization and team perform at their best, reducing obstacles on the way. Giving shareholders easy access to information, and this practice will result in greater functioning projects along with top-tier trading.

Venture Capital And Stock Market News Now

The world of venture capital (VC) and investing is changing daily. Here are some updates in the realm of startups and stock trading along with cryptocurrencies and forex.

Venture capitalists are doubling down on bets that humanity's largest challenges can be addressed by the world's smallest organisms. Pivot Bio has raised $430 million to fund its mission to reduce the use of environmentally damaging fertilizer by replacing it with microbes that produce nitrogen. Return investors DCVC and Temasek led the round, which values Pivot Bio at nearly $2 billion. Nature's Fynd, a maker of animal-free meat and dairy products, has landed a $350 million Series C led by SoftBank's Vision Fund 2. Unlike other startups that have engineered microorganisms in a lab to manufacture protein, Chicago-based Nature's Fynd found its flagship microbe in the geothermal springs of Yellowstone National Park. Recent big exits have helped embolden biotech investors. Ginkgo Bioworks and Zymergen, which operate cellular engineering platforms, were given multibillion-dollar valuations by public investors earlier this year.

The VC environment ebbs and flows between startup and investor friendliness. The Venture Capital Dealmaking Indicator offers a method for measuring who has more negotiating power at a given point: startups or investors. Key takeaways include that the VC Dealmaking Indicator uses our deal term data to measure inputs such as supply and demand of capital, board voting rights and valuation step-ups. As of last quarter, early- and late-stage deal terms have become about three times more startup-friendly since the first quarter of 2010. Over the past decade, late-stage deals have been consistently more favorable for investors than their early-stage counterparts. Demand for capital from new and existing startups has outpaced the supply of traditional VC, but nontraditional investors have come into the market to meet the increased demand.

Banking fintech partnerships in the post-pandemic age Over the past year, the pandemic and other market forces accelerated the digitization of lending and banking processes. Many banks forged fintech partnerships to guide them through this digital transition and to implement the right productivity-driving innovations for their businesses. But a number of these partnerships struggled when trying to match scale, align goals and merge cultures. Our new report, From Competition to Cooperation: Keys to Successful Bank / Fintech Partnerships in a Digital World, produced in partnership with digital banking innovator Lendit Fintech, provides insights from interviews with leading fintech executives on how to optimize the banking-technology firm partnerships, including: Key foundations of successful bank-fintech partnerships Building communications Aligning goals and outcomes Dealing with competitive overlap Governance and compliance considerations

The Japanese Olympic sized Economy is weighing the benefits of hosting vs. the massive costs. After a year-long pandemic postponement, the 2020 Olympics kick off this Friday in Tokyo — and they're now called the 2021 Olympics. Some key numbers: 0: Number of fans attending. All spectators have been banned, after Japan declared another state of emergency amid rising Covid cases this month. $15.4B: Cost of the Tokyo Olympics, according to organizers. That's 22% higher than planned due to extra pandemic-related costs. $3B: How much Tokyo has raised from 47 domestic sponsors, a record from host nation businesses at the Games. -90%: How much spending tied to the Games is expected to drop with zero spectators — and that doesn't include spillover tourism spend (think: hotels). You don't have to bring home the gold... if it's already home. For decades, hosting the Olympics has been a source of national pride. But while the Olympics are touted as an engine of economic growth and urban revitalization, the economic benefits of hosting aren't clear. Evidence points to no real change in economic activity for host countries — but very real costs. The Rio Olympics cost $13B, paid for with tax dollars and corporate cash. After the Games, Rio had little to show for its investment (and an abandoned pool that turned orange). The LA Olympics in 1984 marked the first and last time the Olympics were profitable, mostly because planners avoided building new stadiums. Looking forward the International Olympics Committee (IOC) is struggling to attract bidders for future Games. Poor economics for host countries and cities have caused many potential bids to be shot down by voters. The Olympic economy is an unequal ecosystem. While Japan would've taken an even bigger financial hit by cancelling, it still stands to lose the most. The Japanese hospitality and transportation sector is expected to lose up to $1.4B. Meanwhile, the IOC is poised to make $4B in television rights income, despite zero attendees. Companies with broadcast rights will be fine, too: NBCUniversal has already beat the $1.2B it earned for Rio ads. But sponsors like Asahi will get less bang for their buck without the ability to get stadiums of spectators chugging the “Tokyo 2020 Official Beer.”

Consumer prices jumped 5.4% in June from last year, accelerating at the fastest pace since 2008. A few examples: car and truck rental prices (+88%), women's dresses (+16%), and indoor plants (+5%). Fed Chairman Jerome Powell expects this inflation could be a one-time price increase as the economy rebounds. But for lower-income consumers, a spike in the price of meat, milk, or clothes can make a big difference. The "secret" stimulus is a super-charged child tax credit. Last week, the US government started sending parents monthly checks for each child they have. Each month for the rest of 2021, eligible parents can expect $250 or $300 per kid, depending on their age. 39M households will receive payments, covering 88% of US children. Pandemic stimulus checks boosted spending at go-to chains like Walmart, Costco, TJ Maxx and Target. This monthly child "allowance" could provide a similar boost to family-favorite retailers in the face of inflation.

Johnson & Johnson reports updated earnings soon, but don't expect a major boost from vaccine sales. Unlike Moderna and Pfizer, J&J pledged to sell its vaccine "at cost" with little or no profit. Out of $22B+ in sales last quarter, Covid vaccines made up just $100M of J&J's revenue — or roughly 2%. The no-profit approach could help J&J from a PR perspective. And last week Johnson & Johnson recalled several Neutrogena and Aveeno spray sunscreens over a possible carcinogen risk, and it's still dealing with large lawsuits from its baby powder scandal. 

Twitter and Snapchat kick off their new social media earnings as well. In February, Snap got investors excited by saying it expects 50% annual sales growth for the next several years. Meanwhile, Twitter's yearly sales growth pales in comparison to Snap and Facebook's. It's been struggling to gain users, and it just killed its Stories feature "Fleets." More broadly, social media platforms continue to face criticism from regulators and customers for failing to police hate speech and misinformation. It's to be determined if that will end up hurting the bottom line for these social media platforms trying to compete with Facebook.

Robinhood Markets Inc. (HOOD) plans to go public in the face of controvery and growing competition from exchanges like WeBull and Coinbase. You can now find HOOD in the IPO Access list and review the prospectus to see things like the amount of trading volume and profits are from cryptocurrency such as Bitcoin and Dogecoin. View list You can also learn more about investing in IPOs and the allocation process on Robinhood Learn and in our Help Center. IPOs can be risky and speculative investments, and may not be appropriate for every investor. See our full risk disclosure here. There is no guarantee that requests for IPO shares will be fulfilled. All IPO requests are subject to availability – requests are filled randomly the morning of HOOD's IPO. Learn more about our allocation process here. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. No offer to buy the IPO shares can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. This is not a recommendation for the issuer, the IPO shares, or your participation in this IPO. All investments involve risk and loss of principal is possible.

Private debt and equity offerings with target returns of 8% to 16% Access to private debt and equity investments has historically required investment minimums of approximately $250,000. Often, exposure to these asset classes has been via a long-duration fund or, in some instances, an opportunistic one-off investment. The fintech revolution is providing investors with greater opportunities to add alternative investments to their portfolios at lower investment minimums and with shorter duration than traditional alternatives funds. With bond yields at historically low levels and equity markets seeing stretched valuations relative to their historical averages, adding alternatives such as real estate, supply chain financing, and art and legal finance has become even more important. Some of these benefits include: Short durations (three months to five years) Low minimums (<$10,000 per investment) Target annual returns from 8% to 16%.

On July 20, 2021, Bezos, the world's richest man, was launched in Texas by his company's blue origin rocket. After about 11 minutes of flight, Bezos successfully reached the height of more than 100 kilometers in space. In addition to Bezos himself, several guests joined him on the space trip, including his brother Mark Bezos, 83 year old female pilot Wally Fink, and 18-year-old paying passenger Oliver Daiman. This comes about a week after Virgin founder and billionaire Richard Branson completed his own launch into space. This has huge implications for the future of Blue Origin, Spacex, NASA, Virgin Galactic, Chinese and Russian space exploration ventures, and many more entities in the new space tourism industry. Blast off!

Stay tuned for more market updates and crypto news published weekly or monthly here on Lean Startup Life!