Thursday, 4 April 2013

“So what do I do with my money?”

“So what do I do with my money?”

So what do I do with my money? | Investing for a New World | BlackRock

The New World
Today’s markets are as uncertain as ever. But there is one certainty – that the future is coming. It may no longer be enough to simply preserve what you have today; you also have to build what you will need for tomorrow. So don’t put off speaking to your financial adviser. Isn’t it time to be an investor again?


Start taking action. Build a more dynamic, diverse portfolio based on your goals, your investment time horizon and appetite for risk.

"So what do I do with my money?"

It’s no secret that some economies are struggling, but that doesn’t mean all companies are. Consider high-quality companies with strong balance sheets, robust business models, sound company management and attractive growth prospects in fast-growing areas of the world. Many of these companies also pay real and growing dividends, offering investors the flexibility to either draw their income to fund their lifestyle today or reinvest it to grow their total return in the long run.

All financial investments involve an element of risk. The value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. Overseas investments may involve risk of capital loss from unfavourable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume.

Investments in fixed interest securities such as corporate or government bonds pay a fixed or variable rate of interest and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held. Companies which issue higher yield bonds typically have an increased risk of defaulting on repayments. In the event of default, the value of your investment may reduce. Economic conditions and interest rate levels may also impact significantly the values of high yield bonds. Under certain market conditions, liquidity in bond markets may fall significantly without warning. Therefore it may not be possible to sell a security at the last quoted price or at a value considered to be fair. In extreme market conditions, it may be difficult to realise your investments.

Exchange Traded Funds (ETFs) and index tracking mutual funds seek to track a benchmark and holdings are not altered during rising or falling markets. Some ETFs are optimised and therefore may not hold all securities within the benchmark index. Performance may differ from the underlying benchmark index. ETFs trade on exchanges intraday at the current market price which may differ from net asset value. Transaction or brokerage fees will apply. Liquidity is not guaranteed. Active and index tracking mutual funds can usually be accessed at a single valuation point each business day at net asset value adjusted for applicable dealing charges and fees.

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