If you search how to maximise portfolio returns online, you're likely to find a long list of buzzwords: tactical asset allocation, market timing, rebalancing techniques, and other seemingly complex strategies. But from Dominic’s 15 years in the financial industry, usually none of that matters as much as you think.
In this blog, Dominic, CEO & Founder of Cameron James, will share what actually works when it comes to long-term investment success and how you can avoid falling into the traps that many DIY investors unknowingly walk into.
“The very best way to maximise your portfolio returns is to often shut up and do nothing.”
This might sound strange. Conventional wisdom suggests you should be constantly tinkering – buying low, selling high, and making tactical shifts. But in Dominic’s 15 years working with clients, he has never seen anyone consistently make good money through constant buying and selling.
Trust the Process, Not the Headlines
Many clients come to us after years of self-management, proud of their modest gains. But when we analyse their performance over a decade or more, we often find they would have significantly outperformed by simply investing in basic ETFs and index trackers.
The clients who have achieved the best returns over the long term are those who:
- Accept professional advice
- Understand their role in the process
- Let the professionals do their job
- Focus on what they can control
Risk and Reward: The Foundation of Portfolio Returns
To truly maximise returns, you need to understand the relationship between risk and reward. What level of risk are you prepared to take for the potential rewards on offer?
In our practice, we see clear performance differences between our balanced, balanced-adventurous, and adventurous portfolios. An adventurous portfolio might outperform a balanced one by several percentage points during good times. However, during market corrections, that same adventurous portfolio will likely experience steeper losses.
The key is to determine your appropriate risk level at the beginning of your investment journey.
The Long-Term Perspective
Most clients start with a balanced approach. After working with us for several years and building trust in our process, many ask about increasing their risk profile. They've seen that despite market volatility, their investments trend upward over time.
This is the foundation of our investment philosophy: equity markets will continue to grow over the next 10, 20, 30, or 40 years. While past performance is no guarantee of future results, the long-term trend of major indices like the S&P 500 shows consistent growth.
Focus on What You Can Control
During our client reviews, we spend more time discussing areas clients can actually control, rather than obsessing over portfolio adjustments:
- Inheritance tax planning
- LPAs and wills
- Mortgage strategies
- Pension contribution optimization
These elements, combined with a disciplined approach to your investment strategy, create the foundation for maximising returns over the long term.
Keep It Simple, Stay Invested
Maximising your portfolio returns doesn’t come from acting like a hedge fund manager. It comes from setting your risk level properly, trusting a professional, and staying the course. Think of it like taking your car to a garage.
“There's no point paying a garage to service your car, then jumping under the hood with your own spanner trying to do the job yourself. The same applies to financial planning: if you're paying a professional whose expertise you trust, let them do their job.”
The “secret” to maximising portfolio returns isn't about constant trading or chasing the latest hot investment. It's about:
- Understanding your risk tolerance
- Setting an appropriate investment strategy
- Maintaining discipline during market fluctuations
- Focusing on the long-term growth of equity markets
- Working with professionals you trust
Remember, most of our clients are investing for decades – until retirement and potentially beyond. This long-term perspective is very important for maximising your portfolio returns like a true professional.
And as always, take care of UK pension assets.
Book a Free Consultation
If you’re ready to take a long-term, professional approach to your investments, book a free consultation with a UK-regulated financial adviser at Cameron James.
Let’s build your wealth the smart way, together.