Trying to pick the best-performing asset class of the year is very risky, considering that one year's best performing asset class can just as easily end up as the next year's worst performer. For example, over the last five years, Australian real estate investment trusts have been both the top-performing and worst-performing asset class twice! We believe that a sound, well-diversified portfolio with a long-term focus will help reduce volatility and provide steady, consistent returns over the years.
Tip of the day - Diversification still works
Without the knowledge of which asset classes or sectors will outperform, the key is to diversify.
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