A new way to achieve investment diversification

The following article appeared in the Mosman Junior Rugby Club newsletter on 29 June, 2018
By · 29 Jun 2018
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29 Jun 2018
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A question I get asked a great deal is “can you give me some great share tips?”

My answer is always the same – I could rattle off a list of my favourite stocks but for investing success, it is important to look at the bigger picture.

Just as a rugby team consists of players with different strengths, so too should an investment portfolio. Successful investing is not about picking the latest market darling but creating a portfolio that is well diversified in order to lower risks and maximise investment returns.

Achieving diversification

Over the last few years passive ETFs have become a popular way for many investors to achieve diversification. However, one downside of these vehicles is that they track an index that can be heavily weighted towards certain sectors. The ASX top 20, for example, is almost entirely made up of financials and commodities.

The good news is in recent times a number of new products have been launched that we at InvestSMART think will be a game-changer for investors. Active ETFs offer many of the benefits of their passive counterparts – cost savings, simplicity and less paperwork due to their listed structure – but with the added benefit of professional portfolio management.

Whatever investment vehicle you choose, it is really important to give your portfolio a regular review to see how it’s tracking and if anything needs adjusting. The free InvestSMART Portfolio Manager has a HealthCheck tool, which is quick and simple to use but something that can make all the difference in the long run.

Income without sacrificing capital gains

In response to high demand from investors, InvestSMART launched its first active ETF product this month, attracting three times its target during the initial application period.

The InvestSMART Australian Equity Income Fund (ASX: INIF) is designed to deliver investors income without sacrificing capital gain. The concentrated portfolio of up to 30 Australian equities mirrors our existing Intelligent Investor Equity Income Portfolio, which has an estimated income of 5.1% per annum and has returned 11.6% since inception, significantly outperforming its benchmark of 8.1%.

We are excited to give every investor access to a strongly-performing fund, which is actively managed by a team that has a research track record of more than 20 years. We believe everyone should have the confidence to control their future, and it shouldn’t be hard or expensive to do so.

If you would like more information on INIF or would like to access the latest market research and advice, please visit


Ron Hodge | CEO, InvestSMART Group Limited

1300 880 160


^Includes franking. *As at 31 May 2018, after admin and investment fees, excludes franking. Inception Date is 01 July 2015. The income and performance figures quoted are in relation to the Intelligent Investor Equity Income Portfolio.

InvestSMART Funds Management Limited (AFSL 246441) is the Responsible Entity and Issuer of the Fund which has been registered through ASIC under ARSN 620 031 414, and is trading on the ASX under the code INIF. Please read all disclosure documents including the Product Disclosure Statement before making an investment decision. Past performance is not a reliable indicator future performance.

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Ron Hodge
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