Professional asset management involves four key steps:
Getting to know what the client need by knowing the client.
Choosing the best strategy to achieve the client’s investment goals.
Choosing weights in each asset category
- fixed income
- alternative investment
Choosing “best of class” securities for each asset category
Diversification is essential to successful investing. It is the heart of Modern Portfolio Theory.
Safa Investment Services follows these classic steps, as does any professional asset manager.
The difference between conventional and Islamic asset management comes in respecting sharia, which only enters in the final stage, Security Selection.