Cash
You are not prepared to risk any capital reduction on your
investments and are prepared for the likely loss of buying
power due to the erosive effects of inflation and taxation.
This style of investor commonly has an investment time
frame of less than 3 years.
Asset Allocation: 100% Cash
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Cautious
You are prepared to accept very little variation of capital
value when you invest. Your priority is to conserve capital
and cannot afford to chance the investment value declining
too much. You have a short term investment time frame of
3 years and are only prepared to hold a small proportion
of growth assets. Your predominant requirement is for income
returns and will therefore usually favour income bearing
securities such as bank accounts, cash management trusts,
mortgage funds, domestic bonds and international fixed
interest with limited exposure to shares and property.
Asset Allocation Range: 70% Income / 30% Growth
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Defensive
You are the type of investor who requires a solid income
stream and place capital growth as a secondary priority. You
know that you need some exposure to growth assets so that
your capital is not entirely eroded by the effects of
taxation and inflations, and would usually have an
investment time frame of 3 to 5 years. The defensive
investor portfolio is usually leans towards income bearing
securities with no more than half the portfolio exposed to
shares and property.
Asset Allocation Range: 50% Income / 50% Growth
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Prudent
You find it acceptable to have variation to a large part of
your capital value because you realise it is necessary to
minimise the erosive effects of taxation and inflation. You
remain cautious toward taking risk of capital loss and would
usually have an investment time frame of 5 to 7 years.
The Prudent investor would typically have emphasised
holdings of shares and property with a smaller exposure to
income bearing securities that will serve to smooth overall
returns.
Asset Allocation Range: 30% Income / 70% Growth
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Assertive
You are concerned by of taxation and inflation, and are most
interested in maximising capital growth rather than income
returns. You understand there may be some sacrifice to the
short term value of capital in order to maximise returns in
the longer term, and would usually have an investment
time frame of at least 7 years. With an understanding of
the movement of investment markets, the Assertive investor
style would predominantly hold investments in Australian and
international shares with some active management of property
and fixed interest investments to balance the volatility
effects.
Asset Allocation Range: 10% Income / 90% Growth
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Aggressive
You are a high growth investor prepared to compromise your
capital value in order to pursue potentially greater returns
and usually have a long term of 10 years plus investment
time frame. You are most interested in reducing your
taxable income and have an understanding of the behaviour of
investment markets. A high growth portfolio would typically
comprise of diverse investment choices, however, there would
be a predominance of actively managed Australian and
overseas shares. Security of capital is secondary to the
potential for wealth accumulation for this type of investor.
Asset Allocation Range: 100% Growth |
