Things to consider continued The value of diversification Consider your individual needs One well-established way of trying to manage investment Achieving the right combination of investments will risk is diversification. This is achieved by investing in require careful consideration of the characteristics that a blend of asset types that offer diverse characteristics different assets may offer, in the context of your individual and have the potential to behave differently in various circumstances. Investors need to think about whether economic or financial market environments. The essential they need a guaranteed income or if they are able to take principal of diversification is to avoid ‘putting all your some risk with their capital to aim for higher income. eggs in one basket’. This may provide the best chance of Important information generating a sustainable income stream for the long term. We are unable to give financial advice. If you are unsure The risk/return trade-off about the suitability of your investment, speak to your Achieving the right diversified blend for your needs will financial adviser. The views expressed in this document require careful consideration of the characteristics that should not be taken as a recommendation, advice different assets may offer, in the context of your individual or forecast. circumstances. Investors need to think about whether they need a guaranteed income or if they are able to take The value of investments will fluctuate, which will cause some risk with their capital to aim for higher income. The fund prices to fall as well as rise and you may not get back typical trade-off between higher return and higher risk is the original amount you invested. a basic principle of investing and should always be borne in mind. A diversified portfolio could be more stable as the You should also think about what you need the income market rises and falls. Combining bonds, equities and for, and over what time horizon. Different financial goals property may reduce the impact of shocks. will require different types of income stream. You may want to aim for steady, regular income or it might be more appropriate to try and achieve income growth over time. If you are unsure about the most appropriate way of generating income for your needs, please speak to a financial adviser. 12