SPECIAL FEATURE:
Timidity can cost more than risk
A tough 10 years for pension investors
Your long-term investments probably need a high exposure to equities - but most South African retirement fund members are too conservatively invested, which means they risk having too little money when they reach retirement age. South Africans are generally so preoccupied by the volatility of returns that they don't expose themselves to enough investment risk. In so doing they ignore the biggest risk of all: being underfunded when they reach the end of their investment term, says Brandon Zietsman, CEO of Portfoliometrix, which provides investment services to financial advisers. Paul Stewart, the head of fund management at Bridge Fund Managers, says retirement fund members and retirees funding a pension from their investments use balanced or multi-asset funds to deliver the returns they need. But many fund managers have been too cautious over the past decade, and the returns have been below what is needed. After-inflation return Now, he says, after a decade of low returns, investors ...
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