At Logic, whenever we're talking to new clients we make sure we fully understand their attitude to risk...something that is sadly sometimes overlooked by many firms.
Whatever your approach to investing, one of the most basic and effective risk management techniques is diversification...and it doesn’t have to be complicated.
The key is to build a diverse portfolio with a mix of different investments that makes sense for your age and attitude to risk, and to protect yourself in the case of a market crash.
A balanced investment portfolio will contain a mix of:
- Government and corporate bonds
On average, investment portfolios composed of different kinds of investments yield higher returns and pose a lower risk compared to any individual investment within it, so by “putting all your eggs in one basket” you’re actually hurting yourself financially.
Bear in mind that you should also check your portfolio often and make changes accordingly when the risk level isn’t consistent with your financial goals or strategy.
We can of course get you started, and our recommendations are always tailored to your individual requirements. Talk to us about ETFs, REITs and more during a free no-obligation consultation.