Getting the asset mix right

Asset mix is the term used to describe how different types of investments are blended together within a fund to achieve the desired outcome. For instance, funds may combine an equal percentage of cash and shares or could be more heavily weighted towards fixed interest or bonds. Your ideal blend will very much depend on why you’re investing in the first place.

Do you want your investment to pay an income straight away? If so, funds that are invested in fixed interested securities would provide this type of income.

Or are you thinking 20 years down the line? If you are saving for your newborn’s university education time is on your side, so you can utilise higher risk funds that in time are likely to pay higher dividends. Say, funds mostly invested in shares.

One thing is for sure; everyone has different requirements. We are all influenced by our current financial situation, lifestage and aspirations. Each fund has a different asset mix and as financial advisers we can help you to identify which type of funds will suit your requirements, considering your attitude to risk and your financial aims. Call us today.