sign on contact sitemap homepage
What you should know

Citibank is able to help you make the right investment decisions. If you need more information, visit any Citibank branch or call CitiPhone Banking at 210 929 0000 (local cost for all of Greece).

The investment objectives of each one of us differ based on our need as well as our knowledge. At Citibank, specially trained investment advisors will give you all the information you may need and will help you define your investment needs and your investment profile with the help of CitiProfile in order to choose the kind of investments and the combinations of Funds of Funds that suits you.

We, at Citibank believe that you need to understand the parameters affecting your investments before you feel confident
to make major decisions on your own investments. Keep in mind the following when you are investing:


Investment Objective

The main element in any investment strategy is to determine your investment objectives. Once you have a clear picture
of what you are trying to achieve through your investments, you will be able to manage your funds more effectively.
Examples of such objectives could be the need to provide for the education of your children, a forthcoming marriage,
a house purchase or an adequate pension.


Time Horizon

Defining your investment objective will probably help you determine the time span you will need in order to attain it.
Time is a crucial parameter, and the more time one can afford the more profitable an investment can be. There are two reasons for this:

  • First, there is the noticeable effect of the extra return gained from reinvestment.
  • Second, the longer you hold on to an investment the less you have to worry about short-term fluctuations
    in the value of your investments.

As a general rule, higher-risk investments provide higher long-term returns compared to low risk investments or simple savings accounts.


Investment Risk

All forms of investment contain risk factors which may affect your funds and their potential return. In order to make proper investment decisions you must have understood the nature of the risk affecting each investment and determine your personal ‘risk tolerance’.
One parameter you must have in mind in order to determine your ‘tolerance’ is the percentage of your total capital you intend to invest and its relation to your income.

Another matter you need to consider is your investment behavior under adverse market conditions. For instance, what would you do if the value of your investments fell significantly at some point? Would you wait until it regained its original value,
or would you sell in order to cut your loss? Or would you invest more money at those lower prices?

Your answers to such questions are crucial factors in your choice of investments. Generally speaking, investment risk can
be expressed as the degree of fluctuation or instability in the overall performance of your investment. By reducing the fluctuation of the total investment you will be able to reduce the risk without reducing the returns to the same degree.
In order to achieve this you need asset allocation and investment diversification.


Asset allocation

In simple words, it means selecting the right combination of cash, bonds and stock (or ‘asset types’, as they are called) with a view to restricting the fluctuations in the value of your investments. The idea behind asset allocation is that different asset types yield their returns in different ways, even under the same market conditions (for example, when bonds show poor performance in a country, a region or internationally, stock may be performing quite well).
The main characteristics of each of the three main asset categories are as follows:

  • Cash in savings accounts does not change significantly in value, is low-risk but also has low returns;
  • Bonds are relatively stable, as their yield and their redemption value are fixed. Their value fluctuates according to changes in interest rates and the issuer’s potential and reliability. These risks mean that bonds will usually yield higher returns than cash.
  • Stocks are more susceptible to change than cash or bonds. The risk of buying stocks as a short-term investment is that stock markets are prone to steep fluctuations. Nevertheless, experience has shown that in the longer term stocks perform better compared to both cash and bonds.

Asset allocation is a method employed by major institutional investors; research has shown that it may account for as much as 90% of a portfolio’s return.


Investment diversification

Diversification rounds up the process of sound investing by spreading funds among different countries and industries in different sectors of the economy, which do not react to the same events. This provides your investment with better protection against market fluctuations.




safety  |  Greek
Citibank International Plc has transferred its consumer banking business in Greece to Αlpha Bank A.E.
Citi trademarks are used temporarily under license.

Deposit Guarantee and Investors Compensation Scheme
© Copyright 2005 Citicorp