Importance

Investments form part of very person’s financial portfolio, whether it be in the form of a retirement annuity, share account, property or even a bank account.

Prioritising and actively managing these investments could mean the difference between reaching your financial goals or failing to meet them.

There are a number of different investment options available, understanding how and where they fit into a financial portfolio should be done with great care and diligence.

All investments have a Risk vs Reward aspect to them, finding the balance between these for each investor forms a great part of sound financial planning. We strive to find the best investments in accordance with the client’s risk profile in order to achieve their financial goals.

We believe the best way to reduce risk is by diversifying a client’s portfolio to include all investment options available and in doing so spreading the risk.

Types of Investments

Unit Trust Funds

Unit trusts provide the investor the opportunity to invest in Equities, Bonds, Cash and Property managed by a fund manager/s thus spreading the risk in their portfolio across these sectors. Investors also enjoy the benefits of professional fund management by an expert.

Share Account

A share account consists of buying shares directly in listed companies, this type of investment carries a very high rate of risk. Many professionals and experts try tirelessly to predict and analyse stock market trends and fluctuations as to best minimize the risk and identify undervalued shares with growth potential.

Offshore Investments

Offshore investments is a great medium to diversify and hedge one’s portfolio. Although offshore investments carry many advantages, those same advantages could also be the greatest risk for the investor. An investor should clearly understand how currency risk, tax implications and the global economic market affect such investments.

Tax on Investments

Tax implications on Investments – Shares held for the main purpose of selling for a profit is a trading share. Any profit or loss will be as revenue in nature. Gains will be taxed at your marginal tax rate as it forms part of your revenue. If you hold a long-term, dividend-producing share, this is a capital asset and any loss or gain upon disposal will be deemed capital in nature and would trigger Capital Gains Tax. CGT currently has a 33.3% inclusion rate for individuals.