Asset Classes for Investment

Asset Classes for Investment

Will you make the right selection for Wealth Creation ? 
 
Will  YOU  Invest  in  you  OWN  BUSINESS  or  in  THE  JSE  :
1)  Listed Property ;  2)  Equities ;  3)  Bonds  or   4)  Cash ? 

HOW MUCH OF YOUR HARD EARNED CASH WILL YOU SIMPLY GIVE AWAY TO ASSET MANAGERS WHO YOU WILL HAVE TO TRUST TO LOOK AFTER YOUR MONEY ?

WHO WILL EFFECTIVELY CONTROL YOUR MONEY ?

Asset  Managers, Fund Managers and Financial Advisors get paid Commission and
make their Money by using YOUR Money !  Not all of these people can be trusted !!!
PLEASE READ ALL RELEVANT INFORMATION ON THIS WEBSITE.
 
ALWAYS ENSURE THAT YOU KNOW EXACTLY HOW MUCH OF THE GROSS INCOME WILL BE PAID OUT AS COSTS TO ANY ASSET MANAGER BEFORE YOU RECEIVE YOUR FINAL RETURN !!
BEFORE MAKING ANY INVESTMENT - PLEASE GET ALL THE FACTS IN WRITING !!

FOR  EXAMPLE  SEE  THE  ARTICLE :

" The Luxurious Lives of SHAREMAX Bosses ".  CLICK the RED LINK to the left.

What are Asset Classes ?

Asset classes refer to different types of investments. There are four main asset classes you can invest in – Cash, Fixed Interest, Property and Shares. The return you achieve, and the level of risk, is different with each asset class.

Cash
Cash is the generic term for investments such as short-term Bank Deposits and Treasury Notes. Cash is considered the least risky of the major asset classes – generally providing investors with a moderate regular income, but little chance of capital gain.
 
Fixed Interest / Bonds
Fixed interest investments, or Bonds, are effectively loans provided by investors to corporations and government bodies in return for interest payments over the life of the Bond. Bonds carry a low to medium risk, and predominantly reward investors with a regular income stream – generally higher than that earned by cash investments.
 
Property
Property is considered a growth asset, and involves investing in residential or commercial property, or via a Listed Property Trust (LPT). LPTs invest in a range of property – including residential housing, shopping centres, office buildings, factories, and hotels. As property is a growth investment, capital gains may be expected over the long term, in addition to ongoing income from rent.  Property is considered moderately volatile.
 
Shares
Shares are Securities representing ownership of a company. When you buy a share in a company, you become a joint owner of the business. As a Shareholder, you may enjoy the company's profits through dividends. You can also sell the Shares, hopefully for a capital gain, sometime in the future. Shares are the most volatile of the major asset classes in the short term, but can outperform other asset classes over the longer term.
 
Investing in different Asset Classes is a good way to reduce Risk. By spreading your funds across different asset classes you remove the risk of putting all your eggs in one basket – i.e. the risk that you will choose the wrong asset class at the wrong time. 

JSE  Performance     

“ The JSE delivered a Return  of  10.9%  last year ( 2014 ), 21.4%  in  2013  and  26.7%  in  2012.

Our Investment Strategy and Research Team predicts a very muted market for 2015.   Visit :  www.bwm.co.za 

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