Suitability begins with the investor’s circumstances. A strategy can be coherent and still be unsuitable for a particular person, objective or time horizon.
- What role should the allocation play?
- When might the capital be needed?
- What level of loss can be absorbed?
- How familiar is the investor with the instruments involved?
- Which outcomes or conditions would trigger a review?
A considered process creates room to read the documents, challenge assumptions and decide not to proceed.