Gold, silver and bronze recommendations: AMP Capital
With the Rio Olympics kicking off this week, AMP Capital has revealed what gold, silver and bronze investment opportunities are available amid the all-time low interest rates.
AMP Capital's director of Australia and New Zealand, Craig Keary, said in the spirit of the Olympics it was time for advisers and their client to review their strategies.
The following three asset classes would succeed in the low interest rate environment, he said.
A gold investment strategy would be to invest in multi-assets investments that were influenced by different return drivers.
Gold strategy investments or multi-asset funds offered unique sources of capital, they further enhanced a portfolio's diversification and were flexible and could be altered.
Those types of funds were designed to deliver steady returns, they grew faster than the cost of living and protected portfolios against volatility. They also suited retirees who did not have the capacity to experience a sharp decline in wealth.
AMP Capital's silver investment recommendation was infrastructure. Investors could own utilities and essential services that helped to grow economic activity. Direct infrastructure typically performed well in volatile and uncertain markets, while it also offered attractive risk-adjusted returns.
Investors would also have exposure to reliable inflation-linked income, stable long-term yields, potential for capital growth and access to defensive essential services.
AMP Capital's bronze recommendation was to invest in an Australian equities income-focused managed fund. It offered the potential for higher returns over the longer term and attractive income from dividends that also had additional tax benefits.
Australian equity funds would suit investors who wanted higher and more consistent income streams. It would also suit investors who had a lower tolerance for capital volatility.
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