Understanding Investment Bonds
Discover how investment bonds work, why they might suit your financial goals, and how they differ from traditional bonds. Learn about tax planning, compounding benefits, and whether this insurable investment vehicle is right for your portfolio.
Navigating Employee Share Schemes
Employee share schemes, like equity compensation, options or performance rights can be an incredibly rewarding part of your compensation. For employees working at high-quality companies, they offer the opportunity to participate in the business’s success and create long-term wealth. But if not carefully managed, they can also become a source of financial risk and emotional stress.
Defining Risk – Volatility vs Loss of Capital
When people think about investment risk, it’s usually the immediate and dramatic kind — red numbers flashing across screens, alarming headlines, and sudden drops in portfolio value. It’s understandable. These moments feel urgent and emotional.
But not all risks are created equal. In fact, the greatest risk to long-term investors often isn’t the one grabbing the headlines. To invest with confidence, it’s important to understand the difference between volatility, permanent capital loss, and sequencing risk.
Navigating Equity Market Drawdowns
Equity market drawdowns are an inherent part of investing in shares. These temporary declines in the value of shares indices can be disconcerting, but they are a natural and common occurrence in finance. Understanding what drawdowns are, their causes, and how to navigate them is essential for any investor looking to succeed in the equity market.
Lessons from the Rule of 72
The Rule of 72 is a simple and powerful tool that helps investors understand how long it takes for an investment to double. To estimate this, simply divide 72 by the annual return. For example, if an investment earns a 10% annual return, it will double in 7.2 years. While this is a useful rule of thumb, there are important nuances to consider when applying it to real-world investing.
Avoiding Emotional Investment Mistakes
Investing is often seen as a rational, numbers-driven exercise, but in reality, emotions play a significant role in decision-making. Fear, greed, overconfidence, and herd mentality can all lead to choices that undermine long-term returns. As advisers, we see firsthand how psychological biases can cause investors to deviate from their strategy—especially during periods of political or economic uncertainty.
Understanding UK Equities
We continuously strive to provide insightful investment strategies that strengthen portfolio resilience and leverage opportunities in global markets. Thanks to their distinctive characteristics and timely appeal, UK equities have become a key area of interest. Below, we unpack what makes the UK equity market unique, and why it stands out among global peers.
Alternatives to Term Deposits
With falling interest rates, term deposit yields are set to decline, posing reinvestment risk for income-seeking investors. Alternatives like corporate bonds, private debt, and structured credit can offer higher returns. Arrow Private Wealth’s Lifestyle and Liquidity Portfolios provide diversified solutions to balance risk and enhance income generation.
Understanding the Infrastructure Asset Class
Infrastructure is a unique and increasingly popular asset class that offers investors the potential for stable, long-term returns. With its growing significance in global investment portfolios, understanding the intricacies of infrastructure investments is essential for anyone looking to diversify their portfolio or seek opportunities in this sector.
Understanding Behavioural Finance: Navigating the Emotional Landscape of Investing
Investing is often thought of as a rational activity, driven by analysis, data, and sound financial principles. However, human behaviour introduces a layer of complexity that can significantly impact investment decisions.
Value vs Growth Investing: Understanding the Key Differences
Investing in the stock market can be approached in many ways, with two of the most popular strategies being value investing and growth investing. Each strategy has its unique characteristics, advantages, and potential risks. Understanding the differences between value and growth investing can help investors make informed decisions that align with their financial goals and risk tolerance.
Australian Equities: Market Sectors & Leading Companies
Investing in emerging markets can be a compelling opportunity for investors looking to diversify their portfolios and tap into high-growth potential. Emerging markets refer to countries experiencing rapid growth and industrialisation. These markets offer unique opportunities and challenges that can differ from those in developed markets.
Emerging Markets: Opportunities and Risks for Savvy Investors
Investing in emerging markets can be a compelling opportunity for investors looking to diversify their portfolios and tap into high-growth potential. Emerging markets refer to countries experiencing rapid growth and industrialisation. These markets offer unique opportunities and challenges that can differ from those in developed markets.
Asset Allocation Strategies for the Modern Investor
In the evolving landscape of investment, the strategies investors employ to manage their portfolios have undergone significant transformations. The traditional investment portfolio, often characterised by a straightforward mix of domestic equities, fixed income, and cash, has been superseded by more sophisticated approaches that seek to optimise returns and minimise risk.
Index Composition
An index is a statistical measure that represents the performance of a group of stocks, indicating the overall direction of a stock market or a sector within it. The Australian Securities Exchange (ASX) 200 and the Standard & Poor’s (S&P) 500 indices serve as barometers for the Australian and US stock markets, respectively.
Types of investment vehicles: a guide to building your portfolio
Investing can be a complex and daunting task, especially for those new to the world of finance. Understanding the different types of investment vehicles is crucial for making informed decisions that align with your financial goals. In this article, we'll explore some of the different types of investment vehicles available, discussing their characteristics, risks, and potential benefits.
Compound Investment Returns: Harnessing the Power of Growth
Investing is a smart way to make your money work for you, but if you truly want to maximise your returns, you should consider the power of compounding. Compound investment returns have the potential to significantly boost your wealth over time, thanks to the magic of exponential growth.
Understanding Diversification
Diversification is a key investment principle used to manage some investment risk within a portfolio. It is often described as “Don’t put all your eggs in one basket”.