To create a suitable investment portfolio, the adviser needs to understand with what purpose the client wants to increase his assets or generate income. Related questions are:
- For what does the client need the assets?
- When does the client want to meet his target(s)?
- How much capital does the client need to meet his target(s)?
- Is the client planning to have intermediate deposits or withdrawals of funds? And how much?
- Are there other short-term goals which might be important?
Not every client can formulate a target or goal when they start. But usually there is one anyway.
Investing is, after all, a tool to reach the target. It is the adviser’s job to clearly map why the client wants to increase his capital through the means of investment. An example is the desire to achieve a higher return on his capital than with a savings account. It is important that the adviser gets a clear image of the additional returns a client is expecting for the risks he takes with his funds.
Within the SCOPE KYC Cloud solution, the targets of an account are gradually determined while the client is provided with explanations and clarifications.
The targets are set in an interactive environment, and the type of goal (income, asset growth) determines which questions are asked in the follow up.
Targets will always be surveyed completely and in a structured manner.
Even in the case of less concrete targets, such as the expectation of a percentile return, it is important that the return target is recorded in the form of a calculated figure. It is also possible to store a record of the consultation.