Targeting the best possible returns

growth investing

Clients will have different expectations and needs so advisers must understand whether they genuinely want high returns and, if they do, the best way of getting them is by ensuring realistic time horizons and good asset allocation

What is the alternative to investing for growth? I assume it is investing for income, which implies receiving a regular income for consumption today. Investing for growth is about investing for consumption tomorrow and necessarily implies limiting income today. To grow an investment pot to provide for future spending, there are three questions an investor needs to answer. The first is: what is the investment term? Is it in one year's time, three years, 10 years or longer? If a client is investing for growth, it is assumed he is trying to achieve a higher return than that offered on a risk...