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Investment Concepts - Big Sky Financial Solutions

Investment Concepts



Investing is all about making your hard-earned money work for you. It is a way of planning for the future. Everyone needs to invest - for retirement, to educate children or simply to build wealth for a better future.

Before you make any investment decisions it is important to understand some basic concepts that are critical for success. A clear understanding of these concepts can help you make sound financial decisions for your future.

Asset classes & historical returns
Risk/volatility of asset based investments
Importance of diversification
Understanding your risk profile
Your investment time frame

Portfolio returns are affected by three factors: investment selection; strategic asset allocation and market movement. It is important to recognise that the two factors which can be controlled and amended are investment selection and strategic asset allocation. The factor that cannot be controlled is market movement.

The primary objective of every astute client should be to work with the Big Sky Financial Solutions team to develop a sound financial strategy that addresses the two factors within your control. This will ensure that short-term market movement will not adversely effect your long-term strategy.

When a Statement of Advice (previously known as a Financial Plan) is presented and agreed upon by a client, it becomes the duty of both Big Sky Financial Solutions and the client to adhere to the strategy. Short term market volatility can make investors nervous at times but you must remember that you have invested for the “long term”.

Don’t let short term market volatility change your long-term strategy.

Call Big Sky Financial Solutions on 1300 700 189 or email us and get your long-term strategy working for you.