Completing Portfolio Management Project - Final Steps - Reserved for Prof Scofield

FUTURES PURCHASE STRATEGY

In all aspects, the primary investment agenda is to maximize the returns as much as possible via reduction of any chances of incurring unnecessary risks and losses. In accordance to the investment policy statement objective Expectation and goals the idea was that in a period of about ten years, my portfolio funds will be providing for living expenses in addition to saving 30 percent of the investment income. Thus, when purchasing futures, some criteria were vital in selecting the best company that will be of helpful in attaining that objective. When investing one ought to be very careful otherwise, one may be subjected to a lot of losses and unnecessary cost that otherwise could be avoided if proper planning is undertaken and as well knowledge applied to the whole situation. Some of the strategies that were taken into consideration when purchasing futures include the following;

Customers support

It is imperative to note that unexpected sometimes happen and thus it is essential to invest in a company that is reliable and has a good reputation as well as good relationships with its customers thereby providing support where and whenever possible. Companies that have real-time response with customers were given priority. Successful customers support the effective policies, communication as well as proper documentation. Specific attributes that in this case were critical for futures include the company’s integration of customers profile with an e-commerce platform, highly accessible contact with many support channels including the phone, email, live chat as well as ticketing. Besides making use of the Customer FAQS.

Loyalty programs

These include products discount, exclusive products, and free products. These are critical as they add the value of the returns on the investment.

Referral marketing

Listening to others is vital just to be on the safe side although in the financial environment it is considered that high-risk yields a high return. Moreover, the investment policy statement attributes the ability of tolerating uncertainties, inherent volatility and complexities in the investment market.

Conclusion

Everything is in line with the investment policy statement except only the holding limit, target allocation and selection criteria that needed to be modified in which the client was as well informed about the changes. What exactly was updated include the inclusion of the futures contract in the investment policy statement holding limit, target allocation that was still based on based on the previous experience and guidance from those in the investment market but in the case of futures includes customers’ support and loyalty programs.