diversification

Unfortunately, reaching the retirement milestone does not free investors from the vagaries of markets, a constant companion. A diversified portfolio and patience are two prerequisites for peace of mind in our golden years – and being prepared for the unexpected is key.

Investing in property within a self-managed super fund offers the potential for substantial tax savings, but it’s not for those lacking property market experience. Sophisticated investors should consider several key factors, including costs and compliance, to ensure success within their SMSFs.

As an ever-more-connected world makes it harder to deliver uncorrelated portfolios, there are still strategies investors can use to add diversification. Industry leaders recently discussed opportunities in equities and fixed income at The Inside Network’s inaugural Investment Leaders Forum in Queenstown, New Zealand.

Diversification is key for building long-term, sustainable wealth and managing risk. While no single approach is best, using several diversification strategies offers sound protection against portfolio volatility, writes Selfwealth brand and content lead Robert Marfell.

At The Inside Network’s Alternatives Symposium, Kyle McCarthy and David Lewis encouraged investors to define private credit very broadly to reap the benefits of diversification and strong risk-adjusted returns.

Diversification is one of the most effective tools an investor can use, for the simple reason that spreading risk means you are unlikely to get wiped out if one or two investments go bust. But it is not a foolproof concept, and in fact it is laden with potential traps.

As interest rates creep north, advisers extoll the virtue of investing away from the family home and into a diversified suite of assets.

The term “hold on for dear life” came to explain the events of 2020 and 2021, as did “buy the dip.” For those beginning investing for the first time, their experience couldn’t have been more positive. Every fall in the market was followed by another rally, and the prevailing view was that markets always go up if your holding period is long enough.