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The Smart Portfolio

Our biggest differentiator is how we invest. Most services today invite users to answer a series of risk measurement questions and allocate them to a “risk profile” bucket. Each bucket corresponds to a portfolio of investments managed by a professional in line with a predetermined level of risk.

At WealthSmart, when a user opens an account, we invest their money in the investment with the lowest risk, yet still capable of surpassing the return that a typical bank account generates. In other words, our primary concern is to prevent the risk of loss during the early stages of being invested, while still generating a small profit. Once the investments generate a profit, we gradually shift the portfolio into higher risk investments capable of generating more profits over the long run. We depict this shift below, where the lower growth/risk portion is in brown and the higher growth/risk in light green. As the portfolio matures and becomes more profitable, the proportion of higher growth/risk products increases.

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Think of traditional investing services as a manual gearbox: you pick a speed you feel comfortable with, but you’re stuck at that speed no matter how profitable your portfolio is or how good/bad the market conditions are. WealthSmart is like an automatic gearbox: we start you off at the lowest speed, as your generate profits we gradually shift you into higher speeds, should the market hit a downturn we shift you back down to lower speeds. In short, we throttle the growth of your portfolio depending on market conditions or how profitable your investments have been.

Quick Example

For example, if you invest £10,000 today, £9500 will be invested into a low growth/risk product (for example: corporate bonds) while the remaining £500 will be invested in a higher growth/risk product (stocks) to boost growth. As the profit on the overall portfolio reaches a certain threshold (for example: 5%), we invest the proceeds into the higher growth/risk portion of your portfolio. Your new portfolio would be: £9500 invested in lower growth/risk products, £1000 invested in higher growth/risk products.