Raffi PailagianMBA, BSc, DipFP
Adviser / Managing Partner
It is important to consider your goals and objectives as well as your desired investment timeframe when you are considering we should invest.
Defensive assets such as cash and bonds that are typically secure ideal for the short-term, however, over the medium to long-term defensive assets will not provide any capital growth, protection against inflation, or taxation benefits. Similarly, growth assets such as shares and property will provide capital growth, returns above inflation and taxation benefits, however, short-term volatility and risk in growth asset markets can mean that the value of the investment falls below the starting value in the short-term.
For this reason it is important to match the type of investment asset with your objectives and your timeframe.
If the objective is to fund a holiday or house purchase in the short-term and the best place to accumulate funds is in defensive assets. However, if the investment in a medium to long-term growth assets will be more appropriate.
And within growth assets is important to consider how liquid, or easy to sell down, and asset is if the investment funds will be required in cash at the end of your investment timeframe. Furthermore, the type of growth assets (for example, growth shares vs. defensive shares or residential property vs. commercial property) that you invest in needs to be considered to ensure that the portfolio is sufficiently diversified in order to reduce investment risk over the medium to long-term.
Our investment management process focuses on providing investment advice that matches with a client’s objectives and time frame with a focus on reducing investment risk.
Head Office: Suite 105-106, Level 1, 39 East Esplanade, Manly NSW 2095
Manly Financial Services Pty Ltd is a Corporate Authorised Representative (Representative No.: 321127) ABN 38 115 806 883 of Futuro Financial Services Pty Ltd, Australian Financial Services Licensee (AFSL 238478)
This website contains general advice only. You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Futuro Financial Services Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website.