As we kick off 2025 with a range of perspectives on investment and asset allocation, here is an article that takes a look at the “personalisation” angle.

Bạn đang xem: Personalisation Takes Centre Stage For 2025 Investment Strategy

The following article about the possible financial scenarios
to consider for 2025 comes from Julia Khandoshko, CEO at the
European broker Mind
Money. 

As mentioned in our
forward features calendar, the editors are examining the
various ways of thinking about asset allocation and risk
management when it applies to investment this year. (Here
is an article from December giving the flavour of how wealth
managers in general see the next few months.)

The editors of this news service are pleased to share these
insights; the usual disclaimers apply to views of outside
contributors. To comment, email [email protected]
and [email protected]

In 2025, the US Federal Reserve is planning to continue to ease
its monetary policy and has continued to move in that direction,
with the latest cut of 25 basis points taking place on 18
December. 

Therefore, future changes will push investors to rethink their
strategies. With the expected rate cuts, the era of so-called
effortless allocation to bonds with attractive returns is likely
to come to an end in 2025. New strategies have to be used to
adapt as we enter the new year and what it brings. Let’s discuss
what exactly they are in more detail in this article. 

Turn to personalisation 

When investors could massively buy bonds from reliable issuers
with high yields, the need for personalisation was minimised.
However, the rate cut resumes the interest in many financial
instruments, for example, initial public offerings. It is
predicted that in 2025, there will be even more offerings and,
therefore, more investor attraction. The market rally will
broaden and open up more opportunities for both small and medium
companies. 

In this updated reality, the role of personalisation will grow
many times. Investors with different risk tolerance and different
perceptions of market prospects will require a very thorough and,
more importantly, highly individual approach.

Traditional methods of compiling an investment profile based on a
questionnaire no longer work. Much more work must be done to
understand the client’s appetite. For instance, investors can
declare a long-term investment horizon, but in fact, they are not
ready to withstand a drawdown on accounts even for several
weeks. 

Moreover, the old approaches to diversification are losing their
effectiveness. Markets have become more globalised, and assets
are becoming more interconnected. For example, stocks of large
companies and gold are increasingly moving in synchrony. Change
is needed, and modern diversification requires more complex
solutions. To be precise, the shift can be made towards the
emerging market – they move in a different direction and are less
dependent on the global political situation.

And 2025 promises to be a volatile year – the unexpected
consequences of the Trump election, inflation and overall
geopolitical uncertainty can shake the market. Thus,
personalisation in such conditions is not only the selection of
suitable assets but also a deep understanding of the client”s
real expectations.

Risks and adaptation to new realities

After many years of being dominated by fixed income, investors
have become unaccustomed to risks, which cannot be a good sign
against the background of the expectations of a very turbulent
season. Many investors say that they have changed their attitude
towards investments – 51 per cent say they revised their
investments to make them less risky or more conservative because
of recent market volatility. 

And this risk averseness creates a dilemma: middle-cap markets
offer opportunities for higher returns but also require a greater
willingness to accept volatility. In recent years, large-cap
companies, particularly those in the US S&P 500 index, have
outperformed mid-cap companies. However, this trend may shift in
2025, with mid-cap companies expected to experience faster
growth. The matter is that large companies have historically
found it easier to secure financing, but the dynamics of funding
accessibility may soon evolve. For managers, this means the need
to reconsider the approach to working with clients.

Adaptation comes to the fore here, and formal template-based
planning approaches are becoming obsolete. Investing without
understanding the real “centre of interest” of the client seems
to be meaningless. Success in 2025 will depend on the ability to
adapt to new economic conditions, consider the individual needs
of investors and competently manage risks.

The new reality of tax planning

Taxation issues have always been a major headache for the wealth
management industry. However, this type of hurdle for wealth
management will become even worse in 2025. The same tools offered
in the US, Europe, or Dubai can give completely different results
depending on the client’s place of registration. Moreover,
clients frequently confuse tax residency with tax domicile, which
is an important distinction. For instance, in the UK, inheritance
tax is determined by the beneficiary’s domicile rather than their
residency. Such fragmentation of global markets will only
continue to take place, and managers will have to consider more
thoroughly the nuances of tax legislation when forming
portfolios.

This is especially true in the context of stricter ESG standards.
Although the principles of sustainable investment are more or
less universal, their interpretation and the pace for their
implementation can greatly vary. For instance, the EU and the UK
are now the leaders in adopting the ESG principles, while the USA
still faces acts that hinder this process. Also, different
regions may interpret them in different ways, and due to that,
understanding them correctly becomes paramount.

Final thoughts

Summing up, when the world becomes more complex, only those who
adapt quickly will be able to survive and even maintain
leadership in the industry. Speaking of the wealth management of
2025 in particular, the ones who accept the challenge as an
opportunity and capitalise on it to deliver creative answers for
their clients will thrive.