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Share Market Upside, Without the Downside

This week I wanted to write about an innovative solution for investors that need exposure to growth assets (to access a growing income stream), but are concerned by the ongoing volatility that we traditionally accept as part of the investment cycle.

A small annual fee can buy you a number of options in terms of protecting the value of your account balance. This is definitely of benefit for investors that need the extra level of comfort to ‘sleep at night’; however I don’t necessarily see this as a must for long term investors.

The view at Centre Capital is, that if by paying a small fee we are still achieving big picture what we need to do, then that will leave us in a better position than if we don’t do anything at all.

In the words of Wayne Bennett; “If you do what you have always done, you will have what you always had”.

That is it for another week. For those that need a laugh, click here for some 'new stock market terms'.

Just a reminder that we have our new Client Rewards program up and running; so make sure you get your entries in before 30 June to go in to ONE OF THREE draws to win a $300 gift voucher for Red Balloon Days.

Rob Coyte | Tuesday, March 31, 2009
Comments (2) | Trackbacks (0) | Permalink

Comments

"With the market so low is there any need to look at products that have a capital protection feature?"
Posted: 08-Apr-2009 08:28 AM | Anonymous | 3 out of 5 stars
"@Arthur if we are long term investors then you are right the current market offers a great buying opportunity. Generally, the cost of capital protection outweighs the benefits but if by having that security blanket enables investors to buy now and overcome the "fear" of further short term loses then the additional cost will come out in the wash anyway....leaving the investor better off than doing nothing"
Posted: 08-Apr-2009 10:53 AM | Anonymous |

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