Each year, the Reserve Bank of Australia releases more money into circulation.
But because the total combined amount of money has the same value, each dollar is now worth less to make up for the extra dollars in circulation. This devaluing of the dollar is called inflation.
Read on to find out how investing and inflation fit together. Read on »
Stocks are risky but learning the difference between stock market risk and single asset risk — and how to create an investment plan based on risk mitigation — can help alleviate the fears of investing. Read on »
An introduction into the main asset classes, where they sit on the spectrum from low-risk low-reward to high-risk high-reward, and a visual representation of the link between risk and expected return. Read on »
The first step in designing a sound portfolio is understanding your risk tolerance so that you can translate it into an allocation of growth assets to defensive assets. Read on »
Index funds allow you to know nothing about choosing a company to invest in, or a fund manager who is trustworthy and capable, while still ensuring your returns are consistently in the top quartile of funds year in year out. Read on »
A robust portfolio is built on a foundation of risk mitigation. While we can’t eliminate all risks, there are ways to balance many of the risks to reduce the chance of any single risk becoming catastrophic. Read on »
An overview of the most commonly used bond index funds in Australia and an explanation of the different characteristics to take into consideration when choosing a bond fund for your portfolio. Read on »
What you need to know to design a diversified equity allocation for your portfolio, mitigating concentration risk and currency risk, using Australian index funds Read on »
Franking credits are a tax advantage available specifically to Australians who buy shares in Australian companies. But how much of that advantage are you really getting? Read on »
There are two currency risk – upside and downside currency risk. Learn what you need to know about these currency risks and how to apply it when designing a portfolio tailored to your individual circumstances. Read on »
When it comes to investing, simplicity and control sit at opposite ends of the spectrum. On one side are these all-in-one funds, packaged portfolios that bundle diversification, asset allocation, and ongoing management into a single, effortless investment. On the other side are individual component funds, where investors build their own portfolios, choosing exactly how much to allocate to each underlying asset class.
Read on for how to decide what is best for you and the available funds on the market. Read on »
Different parts of your portfolio move independently over time and the level of risk within your portfolio deviates from your desired asset allocation. Learn how to bring it back in line with rebalancing. Read on »