Investments: What’s right for you?

April 18, 2024

There’s no “one size fits all” when it comes to investments. Some people will need cash for a purchase next month, some have a longer horizon and expect to remain invested, possibly adding more to their investment for years until they need money to fund their retirement. Some people can handle seeing the value of their investment going up and down while others can’t cope with that volatility and need a more certain path. There’s no right and wrong.

There really are a lot of investments out there – all are designed with a specific investment aim in mind but if that aim isn’t yours, they aren’t right for you.

Looking at two investments with differing investment aims, the above graph shows the performance of shares against cash. Whilst the cash returns are a lot lower than shares over the long-term, they are more stable over the short-term.

So as a general point, if you want stability and are investing for a short-term purpose, cash may be suitable. However, if you have the luxury of time and can live with the ups and downs, cash is unlikely to be king and you should consider whether you are better off taking more risk and aiming for higher returns. Of course this will depend on your particular circumstances, and the choice needs to be tailored to what you require.

I have access to a wide range of what are called “managed funds”, which contain a diversified portfolio of investments - so there will be a well-managed, diversified (not all “eggs in one basket”) investment that may suit your aims.  

If you have money in cash or term deposits, it might be worth considering why it’s allocated there, and give me a call if you want to check that it’s the most suitable way to meet your goals. Nobody wants to work hard for their money and then not have that money work the hardest it can for them.  


The information contained in this publication is intended for general guidance and information only. It has not been personally prepared for you. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult with us before making any investment decision. Historical market performance may not be indicative of future market performance.

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