The Best Choice
We believe that Novofina offers the most advanced and transparent way to let your money successfully work for you. Many clients who have come to Novofina simply have had enough of traditional financial products and the attitude of the old finance industry. Others are mixing traditional investments with Novofina products.
Make an informed decision! If you would like to know more about Novofina call us on our service line for a personal conversation or access our contact form here.
Traditional Finance Products Compared to Novofina
Savings accounts – Decreasing purchasing power at low interest rates
|Savings Accounts in Times of Low Interest Rates||Novofina vs. Savings Accounts and Certificates of Deposit|
|Savings accounts are relatively safe in terms of the capital deposited.
Unsuitable for capital growth or preservation in times of low and negative interest rates.
Even capital preservation is not an attainable outcome since inflation is eating up any capital gains achieved through the interest paid on deposits.
Exotic complex products from unsafe countries or unknown banks increase deposit risk.
Slightly higher interest rates require long commitment periods which ultimately increase risk.
|Although savings accounts are relatively safer, Novofina products offer a much better risk-return payoff.
Profit targets with Novofina are on a different level compared with savings accounts and certificates of deposit.
Temporary fluctuations (called drawdowns) are unavoidable and an integral part of any investment in stocks, even the most advanced ones.
Novofina has no lock-in period.
With Novofina withdrawal of the total amount or part of your account balance is possible at any time and free of charge.
Stocks – a good idea, if its done the right way, with a smart systems based approach
|Discretionary Stock Trading||Novofina vs. Discretionary Trading|
|Stocks are financial instruments that are traded on exchanges that are regulated based on applicable laws.
The regulation of the stock market allows for a fair exchange of these financial instruments. This is an important differentiation when we compare stocks to “artificial” instruments like funds, certificates, options, CFDs, other derivatives and FOREX.
Speculation without strategies that can be tested and validated based on existing data often leads to trading losses.
Incorrect human judgement, hanging on to falling equities, irrational behavior (“greed” and “panic”), excessively high broker fees are all lowering the chances of success even further.
Old traditional rules of the game no longer work on modern exchanges where decisions are made in split seconds.
|Only proven trading systems allow for realistic and quantifiable expectations of returns. The same type of systems are being used in the largest investment banking institutions.
Only methods that are based on statistically proven techniques coupled with automated trade execution at the best prices yield the best returns for clients (and not for the intermediary).
Even individual sub-components of Novofina products are using data driven approaches, for example by executing back tests over several decades, often with several billion individual data points.
This kind of precision and big data analysis cannot be outsmarted by human experience and the intuition of industry professionals. The Novofina trading system executes without human error—every second.
Funds – Often too Expensive and Difficult to Choose
|Funds||Novofina vs. Funds|
|Funds buy securities of different sectors and countries and the clients’ capital is managed by a fund manager. Funds often charge hefty fees for their management services which reduce the profitability for clients.
Fees like subscription fees, management fees and minimum holding periods often reduce the profitability of funds and make them expensive for the clients.
Hidden fees resulting from excessive transactions and transactions executed at sub-optimal prices are not transparent to the clients. Furthermore, all marketing costs, salaries of the fund managers and many more line items are deducted from the top line performance which makes funds less attractive for clients.
Also, past performance of many types of funds does not allow for a predictable future performance.
Often times clients select the “wrong” fund, because that fund showed good performance over the past three years. For non system based funds this has no prediction value for the performance of the months and years ahead.
The selection of the fund—and the associated risk—is transferred from the fund issuer to the client.
|Novofina products (systems) decide based on validated, empirical data and not based on the human assessment and intuition of fund managers who might be more or less experienced.
Our systems do not attempt to guess whether the markets move up, down or sideways. This is impossible to predict, therefore all products are designed to perform well under all conditions (note: temporary drawdowns are to be expected).
Contrary to funds where all assets are pooled and are traded in one general account, Novofina offers free individual account management. This means that every account is traded separately based on personalized system settings and the individual size of the account balance.
This also means maximum transparency: Each transaction, each individual position, each transaction’s cost is absolutely transparent to the client. Hidden fees are not possible with Novofina—they do not exist!
We offer maximum reliability for your capital by having experienced portfolio managers monitor the markets and the trading systems before and during trading hours watching out for any irregularities.
Gold – Much More Speculative and Unpredictable Than Expected
|Gold, Precious Metals, Commodities||Novofina vs. Gold, Precious Metals, Commodities|
|Gold is different from commodities like copper (e.g. used in electronics) and lead (e.g. used in batteries) in that its valuation has become decoupled from its use in products.
There is no real “demand” for gold, hence no real supply and demand pattern. Gold prices often times rise when money is fleeing other markets like stocks and real estate.
Gold (as well as real estate) has a magic attraction for private investors, which is being leveraged by speculative traders who are trying to make a profit based on these behavioral patterns.
Precious metals and commodities can still be successfully traded, if repeatable and tested strategies are used, but not based on emotional judgment that most likely leads to buying decisions in already overbought markets.
|Novofina’s products trade selected stocks, because those provide for the best and most secure financial instrument for our clients.
Risk diversification—ranked in all Novofina products ahead of profit expectation—can be better implemented in US markets with hundreds of highly liquid stocks as compared to single commodities or precious metals.
Novofina products never trade on “hope”, as do gold, silver, copper, oil, gas, which “will now rise because …” but on reproducible price movements of fair and regulated financial instruments (stocks).
Real Estate – Nowadays More Often a Burden and Risk Than a Profitable Investment
|Real Estate and Real Estate Investements||Novofina vs. Real Estate Investments|
|Real estate that was purchased years or decades ago and that is located in desirable locations has at times experienced significant increases in value.
These handed-down “truths” and easy access to cheap money for real estate investments has lead to massive price increases and sometimes to valuations that are not sustainable.
It is likely that we will face another market correction similar to the events of 2007/2008 starting in the United States and spreading worldwide. We don’t have a crystal ball regarding the timing of these events, but we know that when interest rates start rising again, a market correction would be imminent.
It is particularly critical that an investment in real estate often ties up all of the investor’s capital into a single vehicle.This leads to a situation whereby all the investment risk is concentrated into one object which is often times not even perceived as risky by the buyer.
|Real estate investments into single objects create a significant concentration of risk. Novofina spreads the risk across many different stock positions (diversification).
Short holding periods tend to be more often right than wrong. As opposed to remaining invested for years, holding on to the hope of value gains in the far future.
Novofina’s products offer worry-free systems based on the most modern trading approaches which can be discontinued at any time, increased, reduced or simply temporarily paused.
Allowing the freedom for one to do with their own money what they want, when they want.