Man­ag­ing the re­la­tion­ship be­tween as­set

The Coffs Coast Advocate - - NEWS -

When in­vest­ing money, we like to spread our in­vest­ments across a wide range of dif­fer­ent as­set types to help man­age risk. Spread­ing in­vest­ments by di­ver­si­fy­ing across a range of as­sets and as­set classes aims to re­duce the im­pact should any one of the in­vest­ments or as­set classes un­der­per­form. A well-di­ver­si­fied in­vest­ment strat­egy recog­nises that each as­set class be­haves in a dif­fer­ent way and at dif­fer­ent times. As one as­set class rises an­other may po­ten­tially fall. We also like to in­clude a mix of both in­come pro­duc­ing as­sets and more growth fo­cused in­vest­ments as each can play a key role in a port­fo­lio. By care­fully man­ag­ing the re­la­tion­ship be­tween var­i­ous as­set classes, it is pos­si­ble to pro­duce a port­fo­lio of in­vest­ments with a lower risk for the tar­geted re­turn.

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