Advisers should take a ‘back to basics’ approach and focus on ensuring portfolio investments suit the client’s ability to weather downturns should they arise in 2013.
“The real penalty in the global financial crisis (GFC) was all those people who panicked and sold good shares,” Dixon Advisory executive chairman Daryl Dixon said.
“People need to ensure they have the right risk profile. My experience is that too many people are in higher risk assets than they can really afford.
“[Also], the fact that 80 per cent of investors allow superfund trustees to choose their asset portfolio just highlights the fact that they’re unlikely to have a portfolio suitable for their needs,” he said.
Although general market sentiment is that the share market will continue to be strong in 2013, there is little certainty, so care needs to be taken with portfolio decisions, he warned.
