Share income: Why not just invest in the big six?

Nikko AM

Nikko AM

Why invest in a unit trust when I can buy the four banks, Telstra and Woolworths? This has been a question frequently asked over the last few years given the high yields and good performance from the big six blue chip stocks (Big 6). The main reason is because of the risk that comes from a highly concentrated portfolio compared with a well-diversified portfolio. While investing in the Big 6 has seemed like a winning prescription over recent years, it is also a high risk strategy because of the concentration in such a limited number of stocks. There is also the issue of stock- and industry-specific risks. (VIEW LINK)


Nikko AM
Nikko AM

Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income, Multi-Asset and Alternative strategies. In April 2021, Yarra Capital Management acquired...

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