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6th June 2019 | Jacek Starobrat | Deputy Head of Portfolio Management

Your first investments made easy

From saving to investing, the road is short, but it can be bumpy. In order to avoid mistakes, the investor must understand the investing basics.

Risk and reward

When thinking about investing, investors can always foresee what they earn in the future, and how to multiply their savings and profits. This category is known as reward. But there is also the other side of the coin. The other side is a risk, i.e. a risk of potential money loss.

When investing funds, we must remember about potential profits and losses. Investing require years of experience, successes and failures and an understanding how to invest "well", which means maximizing profits and minimizing the risk.

Investors who are starting down the investment path should start with low risk products and greater security at the expense of potential high profits. With the increase of financial market awareness and experience, the investment style can be altered from low risk investments towards high risk investments.

However, the question arises how to start your first investments?

How to start your first investment?

It is best to take advantage of the financial market experts who have a high theoretical knowledge and many years of practical experience in investing in the financial market. In this situation, your first investment does not have to be difficult. Our investment company will help you examine your financial knowledge, experience, risk tolerance and match investment products in the form of Model Portfolio Strategies to your needs and capabilities. 

Investors Profile Questionnaire (IPQ)

First, we will analyse your profile, including your individual circumstances and tolerance for risk. Such a process is called the Investor Profile Questionnaire (IPQ) and consists of a series of short questions to determine which investment style is appropriate for the investor. Such a procedure is consistent with the regulations of the financial market supervisor. The Investors Profile Questionnaire helps investors to choose the most suitable strategy in the context of risk / reward.

On this basis, we will be able to determine whether the conservative or aggressive strategy is right for you. Bonds? Maybe equity? Low risk treasury bonds? Or maybe riskier but highly profitable corporate bonds. By carrying out the IPQ procedure, we will be able to determine your risk capacity, risk willingness, investment goals and objectives. If you follow and complete the Investment Profile Questionnaire correctly and successfully, we will propose appropriate investment strategies for you, enabling you to run your own first investment portfolio.

Bank account and portfolios

The second step is to open a bank account in a given currency and dedicated portfolios to manage your investment. You can invest in US Dollars, Euro and British Pound denominated assets. If you open account you can open more sub-accounts (portfolios) for you and your family, children and relatives.

Money transfer

When you transfer your money into your dedicated account – here you go! You are ready to invest.

It is up to you when you start your first investment and when you finish. We will provide you with the necessary tools and offer assets that you will be able to purchase, using our application. At any time, you can ask our professionals how your investment is behaving and what is going on. You can ask about the condition of the economy and what is happening in the market. Our blog will provide you investment knowledge and awareness, as well as letting you discover the secrets of investing and finance.

We invite you to come on a journey and welcome you to the world of investing!

Golden Sand Bank ("Bank") exercised due diligence to ensure that the information contained in this publication was not incorrect or untrue as at the date of publication.

All Investment products are at risk, as their value can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek financial advice. This publication is not an investment recommendation or investment advice in connection with any services provided by the Bank to the Client.

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