You can called it sorting by asset classes, investment product types or investment categories. They all kind of mean the same thing with the objective of making sense of the investment universe. Besides allocating between them, got to take into consideration their nuances in terms of RRTTLLU (7 considerations for investment products). Blending them in appropriate proportions that best express your required view and your own individual RRTTLLU requirements.
Source: Pg37, 3 Dimensions of Successful Investing. SIAS Investment Guidebook in collaboration with SKBI for Financial Economics, SMU
There is a lot of literature on this subject and observe the overlaps, which means clear cut segregation of the categories’ is futile and will not do justice to observable truths about the individual characteristics of each instrument. Just as in material science, malleability, ductility and hardness mean different things. Investment products do have their lingo worth noting too. They each have their own RDMILT (Expected Returns).
Let us consider a bullish view on Gold. How can a person express such a view.
Clearly the same view can be expressed so differently with their nuances associated with the instrument chosen.
If you would like assistance in structuring your portfolio, make an appointment with me today.
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