Why the expert is not a fan of the MSCI World

Why the expert is not a fan of the MSCI World

Experienced portfolio manager Babak Kiani, formerly of HSBC, warns against blind investments in the MSCI World and recommends investors to always keep an eye on the big picture of what is happening on the stock market. After more than 18 years in the financial industry, he advocates that building a portfolio should be done carefully, tailored to investors' individual preferences and risk profiles. Kiani emphasizes the need to understand the relationship between asset classes and carefully examine how specific index funds are structured before making investments.

For the expert, the MSCI World is not the optimal choice for an initial portfolio. He favors other positions and points out that investors should keep an eye on the regional and sectoral diversification of funds. Despite the possibility of investing in the MSCI World, Kiani advises that you carefully consider this decision and consider other possible options. He emphasizes that a portfolio should be strategically constructed to ensure long-term success rather than relying on general recommendations. According to Kiani, young investors should accept the risk, but act with smart planning and in accordance with their own preferences.