Risk Profile – High Growth Investor

The investment objective of a High Growth investor is to focus on long term growth above all considerations. A High Growth portfolio looks to invest up to 100% in growth assets (eg equities and property).

This portfolio suits investors who are willing to accept very high levels of investment value volatility to maximise potential investment performance. The 100% exposure to growth assets means that capital stability is not a consideration.

Such a portfolio is suitable for investors with a long term investment time frame. It is important to note that the value of your capital can move up and down over time, particularly in shorter time spans. Hence these investments should be considered with a minimum time frame of 7 years.

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Investment objectives – High Growth  
Minimum investment period 7 years
Returns  
Forecast average annual return over 10 years 7.6%
Risk  
Probability of a negative return over a single year 21.5%
Expected negative years out of 20 4.3
Forecast rate of returns  
1 year -10.2% to 31.1%
5 years (per annum) -0.9% to 15.8%
10 years (per annum) 1.5% to 13.2%
20 years (per annum) 4.2% to 12.1%

 

Asset allocation – High Growth Target % Minimum % Maximum %
Defensive Fixed Income 0 0 10
Defensive Alternatives 0 0 10
Cash 0 0 10
Total defensive 0 0 10
Australian Equities 40 25 65
Global Equities 40 25 65
Property & Infrastructure 10 0 30
Growth Alternatives 10 0 30
Total growth 100 90 100