| StratEquity does not offer financial advice to clients. It is therefore your responsibility to ensure that the investment products you choose will fit your financial needs.The information below can be used as a guide to see where our investment products might fit in with your needs and we also provide a Risk Profile Analysis tool as a value added service, but please remember that if you require more information or a Financial Needs Analysis of your investment portfolio, you must speak to your broker. The general information that follows is not intended to be seen as financial advice. The following triangle principle outlines a simple yet comprehensive format for planning a well-balanced investment portfolio.
A typical balanced portfolio could be divided into four sections for risk spread: |
1. SAFETY 40% - Safety and Income
The bottom section should form the largest part of one’s investment portfolio (+-40%). The main objective for this portion of one’s portfolio should always be to minimise the risk and keep the bulk of one’s capital intact.Examples of investments that may be suitable for this purpose:
- Term deposits with banks
- Bank investments
- Money Market Funds
2. PROTECTION 30% - Protection and Income
The second section aims at providing one with some form of protection against inflation, tax, currency fluctuations, economic collapse, or political chaos. One should aim to preserve the real purchasing power of one's capital over the long term and in this model, about 30% should be invested into instruments that aim to beat inflation and provide income.Examples of investments that may be suitable for this purpose:
- Property
- Mutual Funds
- Unit Trusts
3. GROWTH 20% - Capital Growth
The sole purpose in this section is to increase the real purchasing power of one's capital. As such, capital protection and income generation are of less importance. One could invest around 20% of one’s total investment portfolio in this section with the aim being to grow the capital by 20% or more per annum.Examples of investments that may be suitable for this purpose:
- Quoted Shares
- Aggressively geared property investments
- Hard assets and collectables
4. SPECULATIVE 10% - Spectacular Profit
The fourth section is the smallest portion of a balanced portfolio (+- 10%) and is purely for speculative and wealth-creating investments which offer the potential of spectacular profits of more than five times return on investment. To invest only in some of these opportunities is likely to be risky, therefore a spread over a number of opportunities is essential to minimise the risk. If only some of these pay off over the medium to long term, they should yield profits that impressively outstrip all other investments.
Examples of investments that may be suitable for this purpose:
- Ground Floor Venture Capital Projects
- New Business Ventures
- Highly Geared Property Syndications
- Developing Existing Businesses
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Risk Profile Analysis
Empowerment Investments
Wealth Creator Subscription Plan
Lump Sum Investment Plan
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