Investment basics

There’s a lot to know about investments, such as how to create a portfolio that meets your needs and goals, how to manage risk, and the effects of tax and interest rates on different kinds of assets. It’s worth taking the time to learn more about investments and, if you can, seek investment advice. This is where professional advice from a Commonwealth Financial Planner can be invaluable to guide you through and help set you on the path to a better life.

Types of investments

The right investments can make all the difference in the returns you achieve and how quickly you achieve your goals. We provide some basic information and services to get you started, but creating your portfolio and a comprehensive financial plan is something that’s best undertaken with the help of professional investment advice.

Creating an investment portfolio

There’s no such thing as a ‘one size fits all’ portfolio. The first step in creating yours is identifying your unique financial goals and dreams for the future. Only then can we offer you professional, tailored financial advice, and help you select the right mix of investment options to suit your goals.

Diversification

Risk is an intrinsic part of investing. One of the most effective ways of managing investment risk is through diversification, or by spreading your money across a range of different investments and investment types. Owning a diverse portfolio should help you achieve smoother, more consistent investment returns over time.

Think in years, not days

Ups and downs are intrinsic to the markets, so it’s important to stay focused on your long-term goals. When markets fall in value, some people are tempted to sell their investments and buy back in later. This approach may initially seem sensible, but really it’s time in the market, not timing the market that determines your wealth.

Understanding interest rates

To maximise the value of your portfolio and minimise risk, it’s important to understand how the current interest rate environment and future rate changes could affect your investments. For advice about the effects of interest rates, or to create an investment portfolio, you can take advantage of our complimentary, no-obligation initial consultation.

Planning for tax

In conjunction with your tax adviser, your planner can work with you to ensure you are taking advantage of any available tax concessions and that your investments are structured in the most appropriate way.

• Important information
  The information contained on this web page is of a factual nature only and is not intended to constitute financial product advice. It has been prepared by Commonwealth Financial Planning Limited without considering your individual objectives, financial situation or needs. You should consider its appropriateness in light of your circumstances and consider seeking professional advice relevant to your individual needs before making a decision based on this information. Commonwealth Financial Planners are Representatives or Authorised Representatives of Commonwealth Financial Planning Limited ABN 65 003 900 169, AFSL 231139, a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124.