Can a private investor beat the market?

Yes, without a doubt. But is it really necessary?

The truth is that generally investment funds don’t beat their benchmarks. Taking into account this information, can a private investor do it? Based on our experience the answer is yes and one just needs to go over the customized portfolio’s profitability. But how is this possible? If a managed investment fund generally doesn’t beat the market, how can a private investor do so? The reasons are simple:


– Investment funds don’t beat their benchmark indices due to their high costs. A low cost investment formula beats them.

Investment funds become inefficient due to regulations because they can’t apply certain strategies or assume risks. Any investor with low costs and a good asset selection method can beat them too.

-Generally, investment funds are driven by the short term and this fact makes them cost and taxation inefficient.  Private investors with a long-term horizon are perfectly able to overcome these handicaps.

However, this doesn’t mean it is easy. Before creating a portfolio based on bonds, shares or a combination of both; private investors must acquire a minimum of knowledge, be disciplined, have enough time and motivation and choose the right strategy. Therefore, we advise you to do some professional training before you start to invest. A very important part of our mission is to help investors to have a better control of their finances. On our website, you will find many financial articles to help you to make your first steps in the world of investments. Or if you prefer, you can always decide to start investing with us; our customized portfolios have been designed for that purpose.

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But is the objective of beating the market really necessary? This is the first question any investor has to answer. Trying to beat the market might lead to taking certain risks that the investor isn’t ready to assume. It involves being able to accept volatility and potential losses  that could disrupt your sleep. Although our experience has proven that the impact of volatility and losses is diluted with time, are there other options?

Nowadays, private investors have the option to build by themselves simple and efficient portfolios and that have a good combination of time, profitability and risk: the TPCDE we show is a good example. If investors don’t have time or enough motivation for it then there’s the option to build a diversified portfolio with us. In this case we combine simplicity, efficiency and dynamism at a very low cost. And without beating the market we still guarantee good returns and adjusting the portfolio to your risk profile.

Every investor should find out how much risk they are willing to assume in order to beat the market. However, the truth is that taking risks is not necessary in order to obtain reasonable returns, especially if you don’t feel like you are prepared to take those risks.

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