Generally, the higher the risk (or variability) in the returns of an investment, the greater the possible return. Investments such as Australian listed shares will show highly variable returns from year to year compared with bank term deposits – but they will also generally provide a higher overall return in the long run.
Therefore, it’s important to know how much risk you are prepared to live with and what are the returns you require from your investments. Different types of investment assets have different risk and return characteristics. Deciding where to place your savings amongst competing investment options is known as asset allocation.
We work with you through your investments and superannuation to ensure that an appropriate asset allocation is chosen for your particular circumstances.