Wealth Management from A Private Banking Perspective

Popular investment advice prescribes that young investors should have a greater proportion of funds invested in stocks to take advantage of time diversification. In contrast, finance theory states that there is not necessarily a relationship between an investor’s time horizon and the optimal proportion to invest in stocks. The objective of this project is to analyze the investment horizon and its effects on the wealth management of high net worth private banking clients. This subject is of importance as wealth management is one of the primary functions within private banking. The study aims to highlight issues for private banking clients and their advisers in order to improve the asset allocation process.