One of the key elements to ensure client satisfaction is to recognize what risk an investment client is willing to take and what he is emotionally able to deal with. If the content of a portfolio matches with the client’s risk profile, he will stay calm even in case of minus performance. On the other hand, if investments are not corresponding with the risk the client is willing and able to take, even a positive performance will not lead to full satisfaction.
- What is the size and the asset type
- What inflow will be generated based on client’s holdings such earnings on dividends/interest
- What is his monthly salary
- Are there any future inflows to be expected, such as inheritances etc.
- What will be his future financial obligations, such as interest payments & redemption of loans
- What are his living costs, regular payments, tax payments etc.