Classic Financial Solutions SA/NV

Investment and portfolio planning

Investment

Investment always carries some risk, and this is increased when an investment portfolio includes only a small number of securities. For example, if you decide to put all your assets into one share, your risk as an investor will be increased because it will depend entirely on the future performance of that share.

A safer way is to invest in a collective investment fund that operates by pooling money from a great many investors into one mass which is invested into a whole range of underlying securities of which the investor holds a small part in each one. Thus, you will no longer be taking the far greater individual risk linked to a single share although you will still be taking the general risk associated with the share market or sector concerned.

The main sectors are:

• Bond funds: investing in Government Bonds and other fixed interest securities
• Money market funds: investing in bank deposits
• Share (or equity) funds: investing in the stock markets
• Real estate funds: investing in Commercial and domestic property developments
• Mixed or managed funds: investing in a mix of all or some of the foregoing.

For further information and personal advice, please contact us.

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