8 essential strategies for bespoke portfolio creation for UHNI investors
investment strategies for wealthy individuals are often complex and require the guidance of experienced professionals, such as wealth managers, investment advisors, tax experts, and legal counsel. These strategies should be tailored to the specific goals, risk tolerance, and circumstances of each individual or family. When it comes to bespoke investments for such investors, there are several parameters and considerations that come into play.
Some of them are –a. Asset Allocation – Wealthy investors often have a diversified portfolio that includes traditional assets like stocks, bonds, and real estate, as well as alternative investments such as private equity, hedge funds, and venture capital. The asset allocation strategy should align with their risk tolerance, investment objectives, and time horizon.b. Taxes – Taxes are amongst important factors in the UHNI investing space.
They often seek strategies to minimise their tax liabilities. This would involve looking at tax-efficient investment vehicles, tax-loss harvesting, charitable trusts, and other tax-planning techniques.c. Liquidity – UHNIs can afford to allocate a larger portion of their portfolio to illiquid investments, such as private equity, real estate, and direct deals.
These investments may offer higher potential returns but come with increased risks and reduced liquidity.d. Increased Diversification: UHNIs typically have the resources to achieve a higher degree of diversification across a broader range of asset classes, geographic regions, and investment strategies. This can include more exposure to alternative investments, such as private equity, hedge funds, real estate, and direct investments in private companies or projects.e. Legacy Planning – Wealth
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