The best way to better your investing portfolio is to do a more targeted process, a new study has found.
The findings are based on research done by the Israel-based firm Motif Investment, which said the method has proven to improve returns over time.
The research, which was published in the American Journal of Finance, concluded that the betterment approach is “an effective way to diversify and improve portfolio performance in a competitive market.”
In a nutshell, the research said the best strategy for betterment investors is to target a specific investment or asset class and invest the minimum amount necessary to achieve the desired return.
The firm said the betterments strategy is also more effective than the conventional strategies used by more traditional investors because it requires less investment and less risk.
For instance, an investor could choose a stock with a return of 15 percent, for instance, and invest it for 5 years at an average return of 5.5 percent, and then increase the amount to 15 percent every year until it reaches 15.5 per cent.
It would be a 5 percent increase in the amount invested, but it would not require the investor to sell the stock.
“This is a strategy that has the potential to increase returns by a considerable margin,” the report said.
In addition to the potential return gains, the method of betterment is also easier to follow and easier to implement.
“In contrast to the more conventional strategy, the better menting approach involves an extensive process of analysis, including the purchase of a stock portfolio, the creation of a diversified portfolio and a comprehensive investment plan,” the Motif Invest report said, adding that this approach “provides greater risk-adjusted returns.”
For example, an investment of $10,000 in a stock that has a 50 percent chance of rising would take less than three weeks to complete, the report added.
The study also found that the bestment strategy requires less financial capital than the more traditional strategy because of its focus on an individual investor.
“In the case of the less conventional strategy that would take several months,” the study said.
The findings of the research are based largely on the use of data collected by the investment firm Motivefidelity and the Financial Times.
The Motif study is the latest in a series of research studies examining betterment strategies that are more efficient, faster and more accessible than the traditional methods.
In April, the Financial Service Authority of Israel launched a pilot project that was to use the same data to determine how the best menting method would work.
The FSA said it plans to begin using this data in the coming months.
The FSA study, which focused on the financials of a group of investors, found that while betterment’s results were statistically significant, the study’s results also showed that the process could be easily scaled up and streamlined.
The trial, called “Investment in Betterment,” was completed in March and involved participants from around the world, and the results were published last month.
The results of the study found that by focusing on individual investors and the allocation of capital, the investment was successful in boosting returns and boosting the portfolio’s overall returns.
“We found that investors who invested in the more aggressive form of better mentoring had higher returns and that the results of individual investments were consistent with each other,” said the FSA in a statement.
“Investors who chose to invest in the less aggressive form had higher rates of return, lower risk and higher average annual returns.”
However, the FCA did caution that this method “did not provide an automatic path to long-term investment success.”
The FCA, which launched the pilot project in April, is not the only organization that has started using betterment in a trial.
In August, the Bank of America Merrill Lynch and HSBC Group also partnered on a pilot that involved investing in a fund that would invest in a portfolio that has “smaller portfolio sizes,” which is a way of bettering the returns of a particular investment over time, and a method called “lending.”
The fund would be able to take advantage of the bank’s existing “small cap” strategy, which is designed to reduce the risk of investing in risky assets.
“The Bank of the United States and the HSBC Group have decided to take part in a pilot study that will use our own technology to better serve our clients’ portfolios,” the banks said in a joint statement.
The Bank is not alone.
Earlier this month, the UK government launched a scheme to use betterment to better its economy.
In September, the US Securities and Exchange Commission said it is launching a pilot scheme aimed at bettering individual investors.
And in December, the Japanese government announced it is expanding a pilot fund to invest the maximum amount in a particular asset class.