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
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
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.
Last updated: 18 Apr 2017