Category: Investment

Sequencing risk is the risk of receiving the worst returns in their worst order. Conventional wisdom assumes that retirees and those relying on investment income are solely affected by sequencing risk. However, sequencing risk also affects wealth accumulators as they continuously and frequently contribute capital after the initial investment has been made. The idea of sequencing risk contrasts with the principle that time in the market heals all wounds.

Whether franking credits can be offset against an individual’s net tax payable revolve around what is commonly known as, the 45 or 90 day rule.  The 45 day rule applies to ordinary shares and the 90 day rule applies to preference shares.  In this Wealth Pipeline we will be discussing the 45 day rule.

A managed fund is a professionally managed investment portfolio that investors buy into, purchasing 'units' rather than the underlying assets of the fund.  An investment manager then invests the pooled funds to purchase shares or other assets on the investors’ (or unit holders’) behalf.  The value of a unit in a managed fund will rise or fall with the value of the underlying assets. 

Short selling is the selling of a security that the investor/trader does not own.  If you own a stock you are said to be ‘long’.    

Aussie equities have rallied in recent weeks however the outlook still sees global markets stuck in defensive mode with uncertainty surrounding Europe, US and China.