Balanced Investor

What is this person saying?

‘I would really like to make a little more than what the average investor earns and take a little more risk’.

You are an assertive investor who understands better than most people, how the dynamics of the investment markets work. You are more interested in maximizing your funds and balancing your investment across risk free and risky assets.

You are happy to take calculated risks in order to maximize medium to long term capital growth.  You are generally willing to buy investments that are more risky than most investments found in the marketplace that may also not typically be sold in regular markets or are for accredited investors. Regardless, the investor may at times buy individual investments that entail significant greater risk and are less liquid.

This is a balanced portfolio.

This portfolio is suitable for investors seeking a balance between risk and return.

They are prepared to invest for a medium term and ride out periods of negative returns provided they may benefit from higher returns. Capital is not typically guaranteed in the risker investments but may be guaranteed for the other near risk free investments in the portfolio.

The balanced portfolio ideally will have about half of it’s allocation to income and growth assets and the other half to conservative and moderate investments, but this can vary to reflect clients’ needs.

There may be some large fluctuations and some negative returns from year to year. There is a significant risk of a portfolio decreasing in value in a short term although this is substantially reduced for investments over the recommended minimum investment term of 3 years.

Suggested investments are those that carry higher than usual risk but have potential for higher returns, includes shares of dividend paying companies and just a little in potential growth companies, R.E.I.TS, private real estate purchases, crowd-funding, private lending, e.t.c.

Please note, the above diagram is only an example of how this investor profile could allocate resources and is not a recommendation.

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