Investor awareness

Investment objectives

Investment goals should be realistic and reflect the real needs of the investor, for example it may be useful to save for:

• unexpected events (eg emergency home repairs; job loss)
• financing life goals (e.g. home, children's education, car)
• pension supplement.

Time horizon

The time horizon represents the period of time during which investors can invest excess financial resources to achieve their future goals. It depends on the individual and/or their family's financial situation.

From another aspect, it can be considered as an ideal period of time to achieve the expected returns.

Ability to assess and bear risk

Investor risk can be viewed through two aspects:

1. economic, that is, the economic capacity to bear any losses
2. emotional, i.e. the ability to bear risks without feeling stress and discomfort.

For risk assessment, it is necessary to take into account certain important principles:

• the longer the time horizon of the investment, the greater the possibility of risk mitigation and stable returns
• find a balance between investing in risky assets (assets with a higher yield) and less risky assets (assets with a lower yield)
• stay calm during a market downturn
• prefer long-term strategies: share risk and diversify investments.

Investment knowledge and experience

Investors must objectively assess their level of knowledge and experience in the field of investment, in order to be able to choose between different markets and available financial instruments.

Investors who turn to an expert to define an investment solution that fits their profile should actively participate in the meeting, ask numerous questions, proactively share all information useful for defining their financial profile and that could influence a change in the financial profile.

A financial advisor (authorized person/employee) educates clients to help them make informed decisions that match their profile and needs, continuously updating the investment strategy over time.