Balancing your portfolio

Generating higher income means exposure to investment risk, and investors face difficult choices in deciding which asset classes to invest in and how to construct a balanced portfolio that can achieve an income target. Could equity income be the answer?

Investors have faced a series of challenges over the last 18 months, but one of the biggest upheavals for investors is only just beginning to be felt - the collapse in short-term interest rates that is squeezing income for savers and leading to a major reassessment of investment strategies and financial planning. In an ultra-low interest rate environment, the biggest impact will be felt by the most conservative investors, those whose savings are predominantly in fixed deposits and savings accounts with low exposure to riskier asset classes like corporate bonds and equities. With the Bank ...