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.
|Investment objectives – High Growth|
|Minimum investment period||7 years|
|Forecast average annual return over 10 years||7.6%|
|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|
|Property & Infrastructure||10||0||30|