Defensive characteristics

For a defensive investor the financial risk must remain very low and you are prepared to accept lower returns to protect capital. This type of portfolio is suitable for long-term income producing portfolios, as there is little growth potential. This strategy may be considered short to medium term with a minimum investment timeframe of one year.

Moderately Defensive characteristics

A moderately defensive investor is someone seeking better than basic returns, but risk must be low. The moderately defensive investor is typically an investor seeking to protect the wealth that they have accumulated. They may be prepared to consider less aggressive growth investments. This portfolio is fairly stable and should generate returns above inflation in the medium to longer term. This strategy may be considered for medium to long-term strategies, with a minimum investment timeframe of two years.

Balanced characteristics

A balanced investor is someone who wants a balanced portfolio to work towards medium to long-term financial needs. The balanced investor typically requires an investment strategy that will cope with the effects of inflation. Slightly higher risks will be acceptable for this investor to achieve good returns through a balance of growth and income producing assets. This strategy may be considered medium to long term, with a minimum investment timeframe of three years.

Growth characteristics

The growth investor tends to invest for capital growth potential as opposed to income returns. The growth investor’s portfolio may include investments that are more aggressive. This portfolio may demonstrate greater volatility and higher risk in the short term, but should generate returns well above inflation in the medium to longer term. This strategy may be considered longer term, with a minimum investment timeframe of five years.