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NEWS
Invest and Protect
Someone once said you have to speculate to accumulate, but when it comes
to personal wealth the first priority of many investors is preservation.
Conventional portfolio management tools can help through diversification
and asset allocation models. But for many investors the question hangs
“how much of my capital is at risk?” Even with the best spread portfolio
comprising gilts, unprotected equities, property and cash, the short answer
would have to be ‘most of it’.
Few would argue for a long-term cash-based
portfolio so it might be that investors’ need for security and growth is
not optimised by conventional long-only portfolios.
The solution may lie in greater portfolio use of protected investments –
either offering full or partial capital protection in return for geared exposure.
After all, equity upside with downside protection would seem to meet most
investors’ need for preservation and accumulation.