When deciding on your investment portfolio, it is important to understand the relationship between risk and reward. All investments involve a degree of risk and the level of returns can reflect the amount of risk that you are prepared to take.
However, it is equally important to look at your short and long term financial goals when considering the amount of investment risk that you are prepared to take. If you are looking to invest for a long-term goal, then you can achieve a more favourable return by investing in higher risk assets such as stocks or bonds. As your investment will be in place for a number of years, any fluctuations in the stock market will have less long-term impact on your overall level of return.
If you are looking to invest in the short-term, then a lower risk cash investment may not give you as strong a return in the short-term, however will allow you the flexibility to drawdown on the investment at short notice.
We can help you understand your attitude towards investment risk simply by understanding your long and short term financial objectives once you have completed a short questionnaire. Based on this, we can tailor our recommendations and include a portfolio of investments which correspond to the amount of investment risk that you feel comfortable with.
Back to investments