The Benefits of Diversification

Below are tables of most of the asset classes we consider when constructing a diversified portfolio that is suitable for our clients and the risk they are prepared to take.

You can see that some asset classes often go up or down at the same time, but by different amounts and also that some assets go up when others go down. This is known as ‘correlation’ and it means that it isn’t as simple of having ‘low risk’ and ‘high risk’ assets. It is the correct mixture of assets that leads to the overall risk of your portfolio. AM&A builds solutions suitable for your risk profile with nearly any combination of these assets, as long as the proportion and mixture is correct. Also, by avoiding selecting just one type of asset, we can effectively spread and therefore reduce the types of risk likely to impact your investments, since different asset classes are impacted differently.

World Stock Market Returns

Fixed Income Sector Returns