There are four main investment sectors – cash, bonds, property and shares. There are many options within each category. For some investors the answer is a managed fund, which provides a ready mix of assets and investments.
At Iconic Financial we typically build our clients a portfolio of professionally manage funds using specific managers that independent research identifies as amongst the best in their class. A portfolio may have 10-14 managers depending on the size of the portfolio. This gives diversification of investment managers, as well as asset classes. To provide consolidate reporting we use an administration system called a wrap account.
Cash investments are term investments or cash management funds, which provide interest.
Bonds are a type of income investment, which pay a fixed interest rate for a set term. If you sell them before maturity you could make a capital gain or loss.
Property investments cover residential rental property, commercial property and funds that invest in a range of properties. Properties can provide both an income (from rent) and capital gain (from an increase in property prices).
Shares represent part ownership of a company that can be traded. They can be a growth asset (if the share value increases), although there may be returns in the form of dividends as well.
Managed funds invest in a wide range of assets, either in one investment sector – or across different sectors. This helps to diversify a person’s investment. In other words – “not having all your eggs in one basket”.
It’s important to diversify to protect yourself from interest rate changes. For instance you may want to buy a range of bonds, invest in term investments with different maturity dates, or buy in to a managed fund that specialises in bonds, mortgages, or commercial bank bills.
So which type of investment suits you? This depends on what type of investor you are. We can advise what type of investor you are and what is going to suit you to enable you to achieve your financial and lifestyle goals. Contact us today to make an appointment.
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Contact us now you have nothing to lose. We find we can add value to most people’s financial journey. That’s why we offer a no obligation meeting at our expense. It wont cost you anything to find out what benefits you will gain. So contact us today and discover what investments suit you best and we'll get you on the road to success.