SELECTING APPROPRIATE INVESTMENTS IS NOT ALWAYS STRAIGHTFORWARD.
By initially identifying that the majority of investment options can be catagorised the choices may become easier.
The four main catagories are
Variable Income with Fixed Capital (cash deposits)
Fixed Income with Fixed Capital (bonds)
Fixed Income with Variable Capital (gilts)
Variable Capital with Variable Income (equities & property)
How have these different Asset classes performed in the past? (adjusted for inflation). The value of investments can go down as well as up, and past performance is not a guide to future performance. | To 31st December | 2009 | 2008 | 2007 | 2006 | 2005 |
| UK Equities | 25.9 | -30.5 | 1.0 | 11.4 | 18.7 |
| Gilts | -3.3 | 11.7 | 1.2 | -4.4 | 6.0 |
| Corporate Bonds | 15.8 | -11.0 | -5.9 | -4.5 | 9.8 |
| Index-Linked Gilts | 3.1 | -2.1 | 1.4 | -2.1 | 6.7 |
| Cash | -2.1 | 4.2 | 1.8 | 0.4 | 2.7 |
| Property (IPD) | 1.0 | -22.1 | -7.4 | 13.1 | 16.5 |
Source - All Barclays Capital
except Property (IPD)
A balanced portfolio can be built by investing across various of the Asset classes.
View a sample balanced portfolio, try this link to a simple asset allocation blend, (from Citiwire), just select your age group and risk profile. asset allocation
PLEASE NOTE these are model answers only, and are not to be taken as personal advice for you.
For further information go to our investment details page or go to unbiased investment sites