Outpacing Inflation

Learn to outpace inflation.

Investing in cash may seem to be a safe bet as the risk of capital loss is very low. However, it comes at a price in terms of lower returns.

Cash may be an appropriate investment for some investors: those who have a very limited risk appetite and/or who need to draw an income. It is also a given that every investor needs to keep part of their funds liquid in case of an emergency.

Cash-only investments are unlikely to deliver

For the bulk of investors cash-only investments are unlikely to deliver long-term investment solutions due to the low returns.

Over the long-term, cash needs to be supplemented with investments in other asset classes. As the graph below illustrates, a balanced portfolio not only helps to deliver a smoother overall return in the long term.

It is also likely to deliver higher returns than a typical cash-only portfolio.
 

The key is to consult with your financial adviser to ensure that your portfolio is constructed in a way that manages your risk exposure while delivering suitable returns.