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Risk - what to consider

When weighing up the risks of an investment portfolio, there are two key considerations: the risk associated with the investment manager, and the risks associated with the investment assets themselves.

  • The risks associated with the investment manager
    Is the investment manager honest, in other words, are your funds protected from underhanded management? Does it have the right checks and balances in place?
  • The risks associated with the investments themselves
    Even if the investment manager is honest, could it expose your funds to excessive risk?

The keys to your protection

When it comes to the broad risk issues mentioned above, there are some key things to look out for:

Look for an investment manager who has:

  • A separate custodian for client investments.
  • A business that has clear separation of duties and tasks.
  • An independent and reputable auditor for client investments.

Consider the following:

  • What are the investment philosophies and processes of the investment manager?
  • Are they offering a diversified or concentrated portfolio?
  • What is the level of liquidity of the assets?

Need more information?

Find out what safeguards Kiwi Wealth has in place to help protect you from these risks.

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