Investment

Most investment strategies are simply a series of short-term speculative bets strung together and called “investing.” Research has shown that these active-management strategies are promoted by overconfident money managers who too often place their interests before yours.

At Equius, your portfolio is invested in broadly diversified, low-cost mutual funds called asset class funds. These funds are allocated to parts of the market that offer long-term risk and return characteristics that are relatively predictable despite ever-changing economic, social, political, and financial conditions.

More specifically:

• Our primary emphasis is always on appropriate asset allocation—among stocks and bonds generally, and among large and small, growth and value, and U.S. and foreign stocks specifically.
• Our goal is to capture expected returns for selected asset classes more fully and consistently by investing in highly structured, “passively” managed institutional mutual funds.
• Our portfolios spread ownership over as many as 7,500 different companies in the U.S. and foreign markets.
• Noticeably absent from our strategy are extraneous, complex, or speculative “alternative” asset classes.
• We are disciplined in rebalancing to established asset class targets when necessary to ensure proper risk management.
• We never engage in costly and speculative tactics such as stock picking, sector rotation, or market timing.
• We keep total investment costs as low as possible, emphasizing tax efficiency at all times.

A disciplined adherence to your investment plan, which we strive to enforce through our investment counseling, significantly improves its chance of success.