Managing through volatility

The key to successful investing is to buy low and sell high. But more often than not, investors do the exact opposite. The reason? Investors are human. For example, many panic and cash out when markets fall. Ironically, at these times, these investors fail to recognise they are actually at the point of maximum financial opportunity.

There are several potential benefits of a diversified investment portfolio, and one of the most important is to reduce concentration risk. This tool shows how different asset classes have performed erratically year to year, demonstrating the benefits of a well-diversified, multi asset approach.

Although the markets might return a loss in difficult years, this brochure shows the returns a client could have experienced had they stayed invested. Using weighted averages, it also demonstrates the difference in volatility and returns between lower risk and higher risk strategies.