We typically depend on research and data to do many things in the modern world, from medicine to engineering. Why should it be any different for investing?
Using funds that are backed by research and data, we can help you to invest with the right portfolio and share how our advisers keep you in the right mindset for a successful investment experience.
Why Evidence-Based Investing Matters To You?
The world of investing is a very noisy place. Everyone has an opinion on what you should be buying and selling as well as when you should be buying and selling.
At Providend, we filter out all the noise to look at what has worked in investments, not because someone says so but because the evidence says so. And that’s what evidence-based investing is all about. Researching on all the strategies that have worked across decades both in theory as well as in the real world and applying these strategies for our clients so that they have the best odds of enjoying a successful investment experience.
Firstly, it’s about having the right mindset to invest for the long term, allowing your investments to compound over time no matter what’s happening in the markets. Throughout history, media has played up on our fears to make us think that this time, it is different. But global markets have shown us that it rewards the disciplined investor who is able to manage his emotions to stay invested. And the conviction to invest for the long term gives us the greatest probability of investment success.
Secondly, it’s about having the right portfolio that has a robust and systematized investment process, is cost efficient and diversified and suits your risk profile, so that you can sleep well at night. Many funds charge high fees and promise high returns. But does that really work in reality? Many funds research has shown that the conventional investing has very low odds of success.
Diversification is also a key principle in our philosophy. Singapore’s equities constitute less than 0.5% of the global equities market. There is literally a whole world of investment opportunities out there.
Finally, it’s about having the right adviser, who understands you and that you need for yourself and your family and who is able to help you achieve your goals better than what you can do on your own because of her competence, her experience and most importantly, because her interests are aligned with yours.
This chart shows us that the average fund investors and the DIY index investors have not been very successful in capturing the returns that the market has to offer. The index investors with passive advisers, however, fare much better with some of them being able to capture better than market returns due to the benefit of rebalancing during this period of study.
At Providend, we enable our clients to more successfully capture the returns on their funds by adopting the Evidence-Based Investing Approach.
Therefore, we believe you should start to invest with evidence, invest with conviction and invest with Providend.
Interested to learn more about the Evidence-Based Investing Approach? Contact us at https://www.providend.com/service-enquiry/ for an exploratory session today!