The mix of assets in your portfolio should reflect your investment risk profile.
The following asset allocations have been established by analysing returns over a long period and, as such, can be a used as a strategic benchmark when contracting your portfolio.
Defensive investor
- The preservation of your investment capital is important to you and you are prepared to accept little, if any, risk of volatility.
- You would rather accept low but steady growth, rather than risk losing any capital.
- You would not accept a potential loss in any year.
Conservative investor
- You are more comfortable with stable investments and are not willing to accept much risk.
- However, if you have a longer time horizon, you are willing to accept a low level of volatility in your returns over the short term, as long as in the medium term, the value of your capital is preserved.
- You would accept a potential loss in one year out of every nine.
Conservative Balanced Income investor
- You want to generate income and have the option of growing your investment over the medium term (more than five years) with moderate volatility.
- You would accept a potential loss in one year out of every six.
Balanced investor
- You want to protect your capital, but also seek some growth in the medium term.
- You are not comfortable with significant fluctuations in your portfolio, but you understand that some risk is needed to achieve more growth over the long term.
- You would accept a potential loss in one year out of every five.
Growth investor
- You generally have a long-term timeframe and are comfortable with the higher level of risk associated with shares.
- You accept that short-term fluctuations will occur in the value of your investment if you are seeking higher capital gain in the long term.
- You would accept a potential loss in one year out of every four.
High Growth investor
- You generally have a long-term timeframe and are comfortable with the higher level of risk associated with shares.
- You accept that short-term fluctuations will occur in the value of your investment if you are seeking higher capital gain in the long term.
- You would accept a potential loss in one year out of every four.
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