Striking a balance between your financial aspirations and your attitude to risk is essential when it comes to making sensible investments for you, your family or your business. To be successful, you must be aware of your financial position and have realistic expectations. AEON works with you to understand your priorities and builds a portfolio of investments which makes the most of a range of opportunities.
When looking to invest, it is important to be aware of both the benefits and the risks. For some people, investing money is about gaining the maximum profit, whereas others are more concerned about minimising loss.
Different types of investment come with different levels of risk and benefit. What seems like an appealing investment to one person could be completely wrong for somebody else. Broadly speaking, lower risk investments give lower returns, whereas higher risk investments have the potential to provide much more in terms of capital reward. When choosing the right type of investment for your circumstances, it is important to consider what the expected real return will be, once factors such as inflation have been taken into account.
The most important thing is not to put all your eggs in one basket. It also requires a realistic awareness of your financial position and some insight into your future requirements. Most people secure their money in a number of different places, which not only ensures that their risk-reward profile is met, but also allows other needs to be covered for both the short and the long term.
Investing in equities subjects you to the stock market’s volatility, but offers opportunities for long term capital growth. On the other hand, cash investments offer stability and security but you are unlikely in the long term to achieve a return which keeps pace with inflation.
At AEON, we recognise that determining your attitude towards risk and identifying your financial goals is the first step in developing a suitable investment strategy for your needs. For a free initial assessment to discuss your financial future, please contact us.