"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
Certainly the least volatile of the major asset classes over a longer period of time is ‘cash’ (money on deposit) followed by, probably fixed interest then commercial property funds and, finally, equities.
This ‘league table of risk’ is also, usually, a league table of investment returns, confirming the commonly-held view that to benefit from high rates of return an investor has to accept a high level of risk. However, with planned asset allocation within a portfolio it is often possible to “have your cake and eat it”.
How?