Rebalance your investments away from equities and gold in favour of debt

This review exercise must be undertaken to restore the portfolio's risk profile to its original level

As the calendar year draws to a close, many investors will approach their financial advisers for an annual portfolio review. Do-it-yourself investors should also conduct this exercise to eliminate the excess risk that may have accumulated in their portfolios over the past year. 

 

What are some key issues in portfolios 

 

Equity exposure in portfolios is likely to have exceeded the original strategic level due to strong performance in equity markets, both domestically and internationally. 

 

Allocation to gold is also likely to have increased, as the yellow metal has also delivered robust returns.  

 

 

Investor returns appear inflated