Case study capital growth

Dominic wants to grow his capital

""Dominic is a long-term investor. His goal is to build his retirement savings over the next 15 years.

He runs his own small business and invests the profits into a super fund. He has chosen a 'growth' investment option that has about 60% in shares, 20% in property, 10% in bonds and 10% in cash.

Dominic is a confident, well-informed investor. Before choosing an investment option, he took the time to understand how growth investments - like shares and property - work, and the risks involved.

He understands that the market will rise and fall over his 15-year investment timeframe but history suggests there will be more ups than downs.

His fund makes sure his money is diversified. It uses many different investment managers who supervise investments in many different sectors to reduce the overall fluctuations.

'I chose an option that invests mostly in growth assets like shares and property because I know that over the long term they are likely to have higher returns. This means my investments should stay ahead of inflation,' says Dominic.

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Last updated: 13 Oct 2016