Inflation is always a potential threat and can make a drastic difference to investors’ outcomes. Its ‘real’, ie after-inflation, returns that matter to investors. Real returns are particularly important for retirees, as they don’t have a rising income to provide protection against inflation and must rely on their investments’ performance.
There’s no denying the attraction investors currently have to ETFs. Market growth continues to surge (up to nearly $10 billion in late 2013) and as new products are launched, growth shows few signs of slowing.
Fitness crazes come and go. The same can be said of your financial fitness. A set and forget financial strategy won’t build the financial muscle your fund needs to support you in retirement.
With cash rates at historical lows, investors continue the hunt for yield investments and has seen a lot of capital flowing into prime office, retail and industrial assets in the major markets. Investors are being attracted by the secure income of these assets, underpinned by long-term leases to quality tenants.
What are the benefits of manager diversification in an extremely concentrated Australian equity market?
Diversification of manager (or blending as it is also known) is understood to provide many investor benefits. However, we believe that blending can actually remove the majority of any active risk from an alpha-generating manager (that seeks to actively pick stocks to outperform an index).
With uncertainty over the prospects for global equity and fixed income markets, many advisers are considering how they go about constructing portfolios to meet the new investment environment.
While we are seeing interest rates remain at record lows for now, it will be interesting to follow the trend of lending affordability.
Even the most seasoned investors succumb to emotion when making decisions. However, understanding some of the common investment pitfalls will keep your emotions in check and provide a far more profitable experience for you and your clients.
While we are seeing interest rates remain at record lows for now, it will be interesting to follow the trend of lending affordability.
ew research has found the majority of Australians do not see benefit in seeing a financial adviser because they do not understand what we do, writes Mortgage Choice Financial Planning, General Manager, Tania Milnes.
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