Table of Contents
Introduction
Investing is a key to financial growth and it is important to have the right investment partner especially for the new entrants. UBS, one of the biggest global financial services companies, provides numerous investment products and the advice of professionals to help people achieve their financial goals. This article is a beginner’s guide that will help you understand why it is beneficial to invest with UBS and what tips will assist you in making the right investment decisions.
The UBS Advantage
Worldwide, UBS is one of the largest financial service providers, and has been successful in the investment industry. Following are some of the major advantages of investing with UBS:
- Global Presence: UBS is present in more than 50 countries and therefore provides the client with a wide range of investment products across the globe.
- Expertise: UBS has numerous qualified financial advisors who will help you suggest the best investment products suitable for your financial goals and risk tolerance.
- Research and Analysis: UBS has a research department that provides a thorough analysis of the investments made, which helps investors make the right decisions.
- Diverse Investment Options: UBS offers a wide range of investment products including stocks, bonds, mutual funds, and other alternative investments to create a diversified portfolio.
- Wealth Management Services: UBS offers wealth management services that include financial and estate planning, tax advice, and other services to help investors achieve their long-term financial goals.
Investment Strategies
It is very important to have a strategy when investing with UBS. Let’s look at the strategies that are available:
Growth Investing
Growth investing is an investment strategy that is directed at companies that are expected to have high growth in the future. Such companies usually reinvest their profits in order to enhance their growth. Earnings growth is a key driver for growth investors, who look for companies with new products, low risks and strong competitive position. For instance, the UBS Growth Fund makes investments in companies that have a track record of growth and have potential for the future, with the aim of long-term capital appreciation through sector diversification.
Value Investing
Value investing focuses on the opposite end of the spectrum – it searches for companies that are worth more than they are trading at. Value investors look for firms with solid fundamentals such as low P/E ratios, positive cash flows, and sound balance sheets. The UBS Value Fund is an investment fund that seeks to invest in companies that are cheap but have the potential to perform well in the future and aimed at delivering attractive risk-adjusted returns by investing in firms that trade at discounts to their intrinsic value.
Income Investing
Income investing is based on the generation of income from investments. This approach is especially useful for retirees or those who need investment income to support their living expenses. Dividend stocks, bonds, and REITs are favorite investments of income investors. The UBS Income Fund is aimed at providing income to its investors, with its investments being made in a number of assets that provide stable returns, including dividends and fixed income.
Risk and Return: What You Need to Know
There are two aspects that cannot be overlooked when it comes to investments: risk and reward. In most cases, high risk usually comes with high returns. UBS assists clients in identifying their risk tolerance and recommending investments that are suitable for them. For instance, UBS develops various risk-based portfolios that are meant to meet the different risks of the investors and also make sure that the portfolios are diversified and rebalanced to reflect the risk tolerance of the investor.
Case Study: UBS Global Allocation Fund
The UBS Global Allocation Fund is one of the most popular managed diversified portfolio options provided by UBS. The objective of the fund is to seek long term capital appreciation through investment in equities, fixed income instruments and alternative assets. For instance, there is a investor who invested $10,000 in the UBS Global Allocation Fund five years ago. Over this period, the fund has grown at an average annual rate of 8%, which would have meant that the investor’s initial investment would have been worth about $14,693. This case shows the possible returns of the investment over a period of time and the potential for growth with UBS.
Conclusion
Investing with UBS provides beginners with a choice of investments, experience and advice. No matter whether you are willing to buy growth, value or income assets, there are a number of approaches provided by UBS to help achieve your financial goals and risk tolerance. Always know your investment goals, risk tolerance, and time horizon before making any decision. With the help of UBS, you can take advantage of their global presence, research capabilities, and wealth management services to achieve your financial growth goals. Start your investment journey with UBS and make sure to get all the expert help you need to build a successful financial future.
