Investment Advice

Staying ahead of the rise in cost of living is something that is on everyone’s mind. Maintaining a suitable investment strategy could be essential in helping build wealth to deal with inflationary concerns.

Our Approach

We provide tailored investment strategies to help build your wealth to fight the battle against inflation.

At Donmont Capital, we can assist you in understanding and achieving your investment goals; whether that be looking at an investment property or constructing a share portfolio.

Risk Tolerance And Time Horizon

Understanding your risk tolerance and time horizon is crucial when seeking investment advice.

Risk tolerance refers to your comfort level with market fluctuations and potential losses and therefore it is essential to align your investment strategy with your risk tolerance to ensure you can withstand market volatility without abandoning your long-term goals.

Equally as important to understand is your time horizon. This refers to the duration over which you plan to invest before needing access to your funds. A longer time horizon typically allows for a more aggressive investment approach, as there is more time to ride out market fluctuations and potentially benefit from higher returns. Conversely, a shorter time horizon may need a more conservative approach due not having the time to ride out market fluctuations and in turn capacity to take on risk.

At Donmont Capital we utilise a risk assessment tool called a Risk Profile. This questionnaire asks a series of quantitative and qualitative questions to determine your investment goals so we can ensure the advice that we provide is suitable to the level of risk you are willing to take.

So why do they say “Don’t put all your eggs in one basket”?

Different types of investments behave differently under various economic and market conditions, which is why it is important to diversify.

Diversification is an investment strategy that involves spreading your investment portfolio across different asset classes, industries, sectors, and geographic regions to help mitigate investment risk.

Unsystematic Risk refers to the risk that is unique to a specific company, industry, or sector. As seen in the adjacent chart, this particular risk can be reduced with diversification. By spreading investments across multiple companies, industries, or sectors this can reduce the impact on unfavourable events on single investments on the overall portfolio.

Investment Strategies

ETFs

Exchange-Traded Funds (ETF) are passively managed open-ended funds that are traded on an exchange, similar to individual shares.

They are designed to track the performance of a particular index, commodity, bond, or a basket of assets and offer investors a way to gain exposure to a diversified portfolio of assets without having to buy each security individually.

LICs

A Listed Investment Company (LIC) is a close ended fund with typically a fixed number of shares where fund managers will provide their investors exposure to a variety of shares or other assets.

The investment decisions of the fund are made by experienced fund managers of investment teams who conduct research and analysis to complete the investment selection in order to achieve the fund’s investment objectives, such as capital growth, income generation or a combination of the two.

Managed Funds

Managed funds are unit trusts where investors pool their money together to invest in a diversified portfolio of assets.

This is a tax-effective way to boost a spouse's retirement savings, especially if they have a lower earning capacity. It's important to consider Carry-Forward Concessional Contributions, available cashflow, and residency requirements.

Direct Shares

Direct shares refer to the individual stock an investor purchases and represent ownership in a particular company.

When a share is purchased, you become a shareholder and are entitled to certain rights, such as voting at shareholder meetings, receiving dividends, and participating in the company's growth and profits.