Shares, also known as equities, are likely to form a large proportion of your portfolio. Over the longer term (five to seven years) investing in shares may provide you with higher returns than other asset classes such as cash or fixed income.
While shares can give you the potential for strong capital growth, the dividends you receive from them can also help smooth your portfolio returns. This is true even when markets are volatile.
New Zealand and Australian equities also offer attractive income opportunities and can give you access to a broad range of industry sectors that can help diversify your portfolio.
New Zealand and Australian shares provide:
Flexibility to target capital growth, income or a combination
Significant opportunities for active managers to add value
An important source of liquidity