According to Vanguard’s 2016 Index Chart Australian Listed Property recorded a 24.60% return just in front of Global Listed Property with 20.40% return this last financial year.
In fact Listed Property Asset Classes for both Australia and Globally have recorded double-digit growth over the last 2 years. In the last 5 years only US and International Shares together with Listed Property achieved double-digit growth looking at the Vanguard Index Chart below.
As you can see though in the Diversification table below best and worst performing asset classes will often vary from one year to the next. Having a diversified mix of investments across multiple asset classes can help smooth out returns over time.
The table below also reinforces the importance of sticking to an investment strategy and focusing on the long term. For example, the low returns from International Shares in 2011 and 2012 may have swayed investors to move out of this asset class in search of better returns elsewhere. In taking this option, investors would then have missed out on the 33.10%, 20.40% and 25.20% returns in the subsequent 2013, 2014 and 2015. financial years.
Here at FMG Wealth Strategists we believe Wealth Creation and Expansion is a ‘Get Rich Slow’ strategy which wins in the long term. If you would like to discuss further please take advantage of our ’45min Complimentary Wealth Check Consult’ Call us on 08 7111 0022 or drop us an email at email@example.com to make a booking.