Investing for beginners: Assets, asset classes, asset allocation & asset managers

In investing there is a lot of jargon and in order to understand the recommendations which I will make when I work with you, it is important that you understand what various terms mean. Alpha A risk adjusted measure of the “excess return” provided by an investment compared with a benchmark. Alpha can be positive, … Continue reading Investing for beginners: Assets, asset classes, asset allocation & asset managers

Investing for beginners: Diversification

Diversification Diversification is strategy of investing in multiple asset classes and among many securities in an attempt to lower overall investment risk. Whilst we all know that, broadly speaking, equities return more than bonds which return more than cash over time, it is also true that these average returns are not normal. The table below … Continue reading Investing for beginners: Diversification