In 2007, our then Head of Client Relationship Management asked: Chris, do we make more money from clients by going through all the trouble doing this (introducing new investment portfolios to the clients)?
Chris smiled at her and replied: No, we don’t. In fact, we may make even lesser because of the higher operational costs.
Why then do we do this? She asked.
In this episode, I will share our philosophy of profitability and why we have transited to using low-cost instruments such as ETFs, index funds and evidence-based funds from Dimensional Fund Advisors for all our investment portfolios.
Important note: Low-cost investment instruments have proven to better deliver the expected returns for our clients than high-cost actively managed funds.
View the full list of podcast episodes published here.
The host, Christopher Tan, is Chief Executive Officer of Providend, Singapore’s first fee-only wealth advisory firm and author of the book “Money Wisdom: Simple Truths for Financial Wellness”.
Music courtesy of ItsWatR.
For more related resources, check out:
1. Providend’s Money Wisdom Podcast Episode 35: The Best Way to Get Investment Returns
2. Evidence-based Investing – Why Is It Important?
3. The Reason Why I Left the Insurance Agency
Let us assist you in taking care of your financial concerns so you can focus on what matters to you. If you would like an honest opinion on your current financial/retirement plan, insurance portfolio, investment approach and/or estate plan, make an appointment with us today.
