MIDWEEK FINANCIAL FOCUS
Managing the relationship between asset
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.