How to get steady returns using “objective-based investing”

The 20% pullback we saw in the ASX between April 2015 and Feb 2016 was an uncomfortable reminder of just how far equity markets can fall. There is always the chance that a significant decline could occur at just the wrong time for an investor. Is there a way to mitigate this risk? Aiming to minimise volatility and smooth out a fund’s returns, ‘objective-based investing’ starts with the positive objective in mind rather than generating a return in excess of some arbitrary benchmark that could well decline. It is generally focused on generating a return above Australian inflation, a ‘real’ return. Schroders believes that ASX:GROW offers a better way to manage the risk-and-return dynamic associated with investing and that gives clients greater certainty over the results they are likely to achieve. To find out more, please register to receive a copy of our eBook about achieving “real” returns here. (VIEW LINK)