Topic.
Investment strategy without product advice: goals-based investing, asset classes in Australia, rebalancing, and passive vs active approaches.
4 articles in this topic
There is a question that sounds simple but changes everything: what is this money for? Most investment discussions skip this question. They jump straight to returns, asset classes, and performance charts. But returns without purpose are just numbers....
Before choosing investments, it helps to understand what you are actually buying. The term "asset class" refers to a category of investments that share similar characteristics, behave in broadly similar ways, and play a particular role in a portfolio...
A portfolio does not stay where you put it. Over time, different assets grow at different rates, and the original allocation drifts. What started as 60% shares and 40% bonds might become 70% shares and 30% bonds after a strong equity market.
The debate between passive and active investing is often presented as settled: passive wins. This framing is too simple. While evidence strongly favours passive approaches in many contexts, the choice involves genuine trade-offs that depend on indivi...
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