Choosing the right investment
Investing means different things to different people. To some, it is capital growth - building wealth over a number of years. Others have a shorter time horizon or are looking for regular income and a dependable return on their money.
Managed investments offer you a flexible investment solution whatever your investment goals may be.
So whether you are looking to grow your investments over the long term, receive a regular income, or need a short term investment with the potential to earn higher returns than a bank account, there is a BT fund to match your needs.
When choosing an investment an important consideration is risk. The chart below shows the relationship between risk and return for each asset class.
All investments are a blend of three essential factors and whether you invest in a managed investment, or do it yourself, you will need to consider a balance of these three ingredients:
1. Risk
- all investments carry some risk of losing value. But risk is usually
directly related to return, so, generally, higher returns means
higher risks. On the other hand, very low risk investments can have
a low rate of return.
2. Return - whether
you want your investment to pay you income, or to grow in value,
or a mixture of both.
3. Time - how long do you expect to invest for? Investment
timeframes are often broken down into short-term (less than 3 years),
medium-term (3 - 5 years), and long-term (5 years or more).