Don't forget cash diminishes your purchasing power

SMSF's are holding almost 30% portfolio's in cash however this is concerning when you contrast the 11.2% return from holding the S&P500 over the past 50 years with 87% depreciation in the value of a dollar of cash during the same period. Cash diminishes your purchasing power and people need to be aware of that. It also depends on your life stage. 30% in cash when you are in the early years of your professional life is a very high allocation, particularly if your aim is to generate a 10% return on your total portfolio. Watch the full video where Uday, PM CAPITAL portfolio manger, discusses predictions for the AUD, and Australian and global equity opportunities. (VIEW LINK)