The market enjoyed a strong share performance in 2012 due to renewed investor confidence, but advisers need to focus on ensuring investors still allocate suitable risk to their portfolio in the coming year, Dixon Advisory said.
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.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 15 Feb 2019ASIC to undertake harsher penalties against banksBy Eliot Hastie
- 15 Feb 2019Court restrains unlicensed firm from operatingBy Adrian Flores
- 15 Feb 2019ASIC used Dover whistleblowing to shut licensee downBy Adrian Flores
- 15 Feb 2019Minimal time spent on client engagement, survey findsBy Adrian Flores
- 15 Feb 2019Advice regtech aims to ease CPD burden under FASEABy Adrian Flores
- 14 Feb 2019AMP adviser network declined 4.6% in 2018By Adrian Flores
- view all