When deciding where your capital should be invested, it is important to use a combination of different asset types to reflect the level of risk with which you are comfortable.
Different asset classes are appropriate for different objectives and economic situations. This must be kept under constant review so that the most appropriate assets are employed at all times.
In theory, the more return that an investor wishes to generate from their portfolio, the more risk they will need to take. However, it is just as important that the investor should be aware of how much the value of the invested capital could fluctuate as a result of the chosen level of risk.
You can reduce risk by selecting a combination of different asset classes, and by diversifying within an asset class. When investments are diversified, they should have a combined risk which is lower than the different asset classes exhibit on their own . Time is also important. The longer you can remain invested, the more you are able to tolerate potential short term loss and achieve your aims of positive returns over the long term. With our guidance, your personal strategic risk allocation will emerge.
Inflation can improve or ruin your financial plans
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