Apsire Partnership Brochure - page 58

Balance
Diversify theassets inyourportfolio tohelpcontrol the risk
No doubt you’ve heard there’s no reward without risk. That’s as true of
investing as it is of anything else in life. Research also shows that asset
allocation is themajor determining factor of a portfolio’s returns. So you
can’t control what happens in the markets, but you can understand the
historical patterns of equities andbonds and influence theamount of risk
you takewith your portfolio.
The cunning thing about these two asset classes is that when combined
in a portfolio, they arenegatively correlated -which justmeans they don’t
react the same way to a set of economic circumstances. The result is
that bondsbecomeadiversifier to the riskof equity investments - it helps
smoothoutmarket ups anddowns.
TRANSPARENCY 04
56
1...,48,49,50,51,52,53,54,55,56,57 59,60,61,62,63,64,65,66,67,68,...76
Powered by FlippingBook