Typically, if you dilute the risk of an investment you are also diluting the profits. Managed funds look to circumnavigate this by splitting your money into a range of different funds which will work together to give you the best returns possible.
Diversity is key. Managed funds aim to invest your money in a variety of different areas. This then gives you the benefit of small, steady returns as well as the chance for substantial gains on the riskier investments. The benefit of spreading your money over a variety of funds is that if one venture does lose money, it will not derail all of your investments.
Investing and managing a whole portfolio can easily become a full time job. It may feel safer to manage your own money but it’s often not the best solution. Let our experience work for you. We can fully assess your financial situation and create an investment solution that fits perfectly within your lifestyle. Our advisers are practiced investment managers, skilfully negotiating hundreds of different portfolios and adjusting funds where necessary, so our clients receive the best returns possible.
We want to make your money work for you. Talk to us about your long-term financial goals and we can create a portfolio that will best suit your needs. It doesn’t matter if you are first time investor or if you already have years of experience - we have the tools to help you.
It is important to know where your money is being placed. At Lifetime, we can direct you towards funds that do not invest in cluster mines, tobacco, nuclear weapons and other immoral schemes. Funding the horrors of the world is not something you need on your conscience. Let us make sure you can feel good about the money you make from your valuable investments.
There are several drivers of returns from investing in companies. The main two are from a company growing their earnings over time and from paying dividends to shareholders. But recently in New Zealand we have seen instances of another driver of returns - takeovers.
Happy New Year to all and I hope that you all had a wonderful and peaceful holiday season. As I noted in my recent quarterly performance report, we remain optimistic about the markets over the long-term but have a cautious short-term outlook as we expect volatility to remain with us for the foreseeable future.