MUVADO’s investment strategy is based on academic research and evidence. We do not make investing decisions on impulse or on fanatical beliefs about the next big thing. We do what has always worked and we believe it will continue to work in future.

We allocate money that is not needed in the next 2-3 years to your ‘money mother dough’. It’s your family’s life savings and we understand it’s important. Like a mother dough to create sourdough bread, your money mother dough needs the right process and conditions for growth, to provide for your family’s future.

The key components of a successful money mother dough are outlined below

MUVADO's investment philosophy - evidence based investing

Habitual saving

It doesn’t matter how much you earn, if you spend it all you’ll still have nothing to show for your hard work at the end of the month. Getting into the habit of paying yourself first each month is essential to support you when you stop work.

By starting regular saving habits sooner, and regularly increasing regular savings with each pay rise, your financial freedom can be accelerated.

Muvado can help you put the processes in place to save. If you’re earning, we don’t always care much about what you’re spending your money on, as long as you save towards your future objectives.

Low cost

£1 saved in cost is the equivalent to £1 gained in returns. When investing, higher cost is not always better quality. In fact, low cost is evidenced to be a predictor of higher investment returns.

We don’t want you to pay for fancy stock broker lunches, swanky city offices and chunky Christmas bonuses. We research the whole of the market for the best investment strategy for you. We look to provide you with the highest returns for the amount of investment risk you can tolerate given your circumstances and objectives.

High diversification

We believe investment markets are broadly efficient. That means the price of assets reflects all available information to the market and is the average of what all investors think. For every buyer, someone is selling the other side of the trade. Academic evidence shows it is very difficult to consistently outperform the market.

The best way to reduce ‘stock specific’ risk (think what happened to Northern Rock, Blockbuster and Topshop’) is to diversify your holdings over a large number of assets.

Muvado implements an investment strategy that aims to outperform the overall market over long time periods. We provide more information about the Muvado investment strategy within our 100 day plan.

Tax efficient

There are a number of tax ‘wrappers’ you can save money into. Within these tax wrappers you can hold investments. Choosing the right tax wrapper for your savings is essential to build your money mother dough.

A pension is a type of tax wrapper, and no, they are NOT boring. Often misunderstood, using a pension effectively whilst considering your personal circumstances, is an essential ingredient of a good money mother dough.

ISAs don’t have to be the cash version taken out from a bank; a stocks and shares ISA could be more suitable to meet your objectives. We also consider if more complex tax wrappers such as offshore and onshore investment bonds are something you should be getting into.

In addition to the tax wrapper decisions, your available savings allowances and tax exemptions are ever changing and maximising them each year can be a work of mathematical art. Why not give us the challenge rather than head scratching and arm flailing your way through the spreadsheets?

Balance risk and reward

Understanding risk and reward is essential to implementing an effective investment strategy in your money mother dough.

Your risk profile is made up of 6 factors, we call KENCAT (it’s an acronym). Knowledge, Experience, Need, Capacity, Attitude, Timeframe.

After assessing these factors, we recommend the amount of investment risk you can take with your investment strategy. The risk profile will determine the proportion of assets held as ‘growth’ assets (equities, property etc.) and the proportion of defensive assets (cash, bonds etc.). Investors with a higher graded risk profile will likely have a higher allocation to growth assets.


It’s easy to get caught in the moment when investing, and be dragged into checking your investment valuations daily. It can hurt when we see the value of our investments declining. As humans, we are conditioned to take action when things hurt. Touch a hot plate, pull away. Hear a bang, run for the hills.

The best friend of an investor is time. Time in the market and not timing the market is proven to be a successful strategy over long periods and this requires patience. Patience to ride out the bad times, tolerate the daily market fluctuations and benefit from capitalism doing its work.

The average investor, sells at the bottom and buys at the top and working with Muvado can help you be better than average.