How We Invest Your Money: Our Investment Process

At SIP Wealth Management, we have a four-step process: understand your risk profile, set your asset allocation, select the funds, then monitor and rebalance continuously. No hunches, no stock tips: a transparent, repeatable process, so you always know how decisions about your money are made.

Step 1: Understand your attitude to risk

Everything starts with you. Your adviser establishes your attitude to investment risk and, just as importantly, your capacity for loss: how much volatility you can tolerate without abandoning your plan, and how much loss you could absorb without damaging your lifestyle. We use a structured risk-profiling questionnaire and a proper conversation, because a score on its own is not enough. The result maps you to one of five risk levels.

Step 2: Set your asset allocation

Landmark studies of long-term portfolio performance suggest that asset allocation, the mix between equities, bonds, property and cash, accounts for around 90% of the variability of a portfolio’s returns over time. Individual fund selection and market timing play far smaller roles. That is why asset allocation sits at the heart of our process: each of our five risk levels has a strategic asset allocation designed to deliver the best expected return for its level of risk.

Step 3: Select the funds

We maintain five model portfolios: Cautious, Conservative, Balanced, Growth and Adventurous, and a range of bespoke investment funds.

Funds are screened and monitored using independent research technology, assessing performance consistency, management strength, charges and risk. Ethical versions are available at every risk level, and the portfolios themselves are described on Our Portfolios.

Step 4: Monitor, rebalance and report

Markets move portfolios away from their target allocation over time, which quietly changes your risk level. We monitor continuously, recommend rebalancing when the drift becomes material, and replace funds that no longer meet our criteria. Every client receives an annual review with a written performance report and full portfolio statement, and nothing changes in your portfolio without your agreement.

The value of investments can fall as well as rise and you may get back less than you invested. Past performance is not a guide to future performance.

Frequently Asked Questions

How do financial advisers decide where to invest your money?admin2026-08-20T09:02:09+01:00

How do financial advisers decide where to invest your money?

A good adviser follows a documented process rather than personal judgement alone. At SIP Wealth Management that means establishing your risk profile and capacity for loss, matching you to a strategic asset allocation, selecting funds through independent research, and reviewing the portfolio continuously. You see the reasoning behind every recommendation, and nothing is invested without your agreement.

What is a model portfolio?admin2026-08-20T09:02:36+01:00

What is a model portfolio?

A model portfolio is a researched, ready-made blend of funds built to match a defined risk level, which the adviser then applies to your account. It brings consistency and continuous monitoring that would be impractical to deliver bespoke for every client, while still being tailored through your risk profile and tax wrappers.

What does “attitude to risk” actually measure?admin2026-08-20T09:04:15+01:00

What does “attitude to risk” actually measure?

Two things: how much short-term volatility you can emotionally tolerate without abandoning your plan, and your capacity for loss, meaning how much your lifestyle could absorb financially. Both feed into which of the five portfolios is suitable for you. They are reassessed at every review, because circumstances change.

Why does asset allocation matter more than picking funds?admin2026-08-20T09:04:41+01:00

Why does asset allocation matter more than picking funds?

Because broad market movements dwarf the differences between similar funds. Landmark studies attribute around 90% of the variability of a portfolio’s returns over time to its asset allocation, the split between asset classes, which is why we set that split deliberately and police drift from it, rather than chasing last year’s best fund.

What is portfolio rebalancing?admin2026-08-20T09:05:06+01:00

What is portfolio rebalancing?

Selling a little of what has grown and topping up what has lagged, returning the portfolio to its target allocation. It keeps your risk level constant and imposes a disciplined pattern of taking profits high and buying low. We recommend rebalancing whenever your portfolio drifts materially from target.

Can I see how the model portfolios have performed?admin2026-08-20T09:05:29+01:00

Can I see how the model portfolios have performed?

Yes. Ask us for the latest portfolio factsheets and annual performance reports and we will talk you through them. Past performance is not a guide to future returns.

Last reviewed: August 2026

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How We Invest Your Money: Our Investment Process