KASE discussed balancing the risk, return and capital preservation
The KASE Academy organized an educational seminar "Risk, return and diversification" that took place at Kazakhstan Stock Exchange (KASE). The speaker was Valikhan Biken, portfolio manager at BCC Invest.
During the meeting, the participants discussed why investing isn't a gamble, but a system of decisions where the goal, timeframe, risk and portfolio structure are crucial. Special attention was paid to how the investor profits are formed, the importance of accounting for inflation, and the truth behind high returns.
Key types of investment risks were also discussed: market, currency, credit, inflation and behavioral. Participants learned about basic risk assessment metrics and the principles of quantitative analysis used by so-called "quants", the specialists who apply mathematics, statistics and programming for market analysis and testing of investment strategies.
Diversification was a central topic of the seminar. Valikhan Biken noted that portfolio stability depends not on a single "star" security, but on a well-balanced asset allocation across classes, sectors, currencies and investment horizons. The discussions also covered the portfolio examples for different risk profiles, approaches to rebalancing and common investor mistakes - from buying on impulse out of fear of missing out to panic selling.
The seminar brought together the participants interested in learning the basic principles of investing, risk management and building a sustainable long-term investment strategy.