Francesco Coccimiglio on Strategies to Manage Investment Risk

TORONTO, March 6, 2020 /PRNewswire/ -- Turning a profit when investing is the ultimate objective, but it is the ideal outcome rather than a certainty, with numerous factors coming into play to determine the end result. "Individual targets, industry trends, market fluctuations, and unforeseen circumstances all play a part, and short of avoiding any risk – which largely defeats the purpose of investing – capital allocators need to devise and consistently apply strategies that successfully manage expectations while maximizing the return potential. History has revealed a number of commonalities among the greatest investors of all time, and a closer look at their philosophies shows that they all prioritized risk management, achieving remarkable success through the use of a few tried and tested strategies. The lessons learned from their experience remain as powerful today as in the early days of investing, and even novice market participants can become successful if they embrace the right approach to risk management," comments Toronto-based Portfolio Manager and Investment Advisor Francesco Coccimiglio.

Risk management is inseparable from the world of finance, ultimately affecting the decisions of individual investors, fund managers, and financial institutions. Without such strategies in place, each of these participants can suffer dire consequences, sometimes to the detriment of the entire economy. The modern-day investment landscape has become even more complicated, with technology and globalization posing additional challenges to risk identification and analysis. Francesco Coccimiglio notes further, "While there are some simple, proven strategies to reduce the probability of loss, this conversation becomes irrelevant for investors who aim at huge returns in a short time. By definition, these are people or institutions with high risk tolerance, but the vast majority of investors are risk-averse and seek consistent rewards over the long term. In the latter case, success depends primarily on appropriate risk allocation, portfolio diversification, and psychological disposition."

According to many experts and veteran investors, achieving the desired outcomes is predicated on portfolio weighting and diversification, with these two risk mitigation strategies commonly seen as complementary. Some believe that asset allocation is so fundamental to successful investing since the combination of different classes – such as stocks, bonds, real estate, and cash – reduces the risk of significant losses when one of them depreciates. This strategy is considered to work best when implemented alongside portfolio diversification, both across industries and asset classes, to partially offset volatility and absorbs unexpected shocks. Finally, investors need to train themselves to suppress emotions and focus on the longer term while also maintaining realistic expectations. Markets are not efficient; they will rise and fall, often in unpredictable ways, but abiding by a set of rules that places capital preservation before capital appreciation can contribute to asset longevity and consistent portfolio growth.

Francesco Coccimiglio, a Certified Investment Manager (CIM®) based in Toronto, Canada, has dedicated the past 13 years to putting his clients in control of their financial future through creative wealth-building strategies. He draws on his considerable experience in the financial industry, where he has built expertise in securities, mutual funds, risk management, and investment advisory services. Committed to integrity and transparency, Francesco Coccimiglio is a firm believer in placing clients' interests first while also educating them on critical financial matters.

Francesco Coccimiglio – Canada's Leading Certified Investment Manager (CIM): http://www.FrancescoCoccimiglioNews.com

Francesco Coccimiglio - Crunchbase: https://www.crunchbase.com/person/francesco-coccimiglio

Francesco Coccimiglio on the Advantages of Opting for an Independent Financial Advisor over a Bank Advisor: https://finance.yahoo.com/news/francesco-coccimiglio-advantages-opting-independent-123200646.html

Contact Information:
Francesco Coccimiglio
Vice President, Portfolio Manager & Investment Advisor
Hampton Securities Limited
francescococcimiglio.com 
416-872-8715

SOURCE Francesco Coccimiglio