In our Investment Market Review we look at how the markets have reacted to the past events of the quarter. Asset returns in the September quarter reflected the negative sentiment that first commenced in China and momentarily dominated news headlines around the world. However when investing with a well diversified portfolio for the long-term these events are well planned for. This quarter also saw continuing low headline inflation, increasing pressure on the Reserve Bank to lower interest rates and stimulate the economy.
Our article in this report focuses on the importance of diversification in an investment portfolio. It is no secret that the higher returns found in the share market comes at the price of volatility. Here we explain why it is important to spread your investments and how this reduces the overall volatility and risk of a portfolio investment.