1. Asset Selection – Choosing Equities
There is a wide variation in the returns achieved by different types of asset and so achieving the best investment performance relies on optimum asset selection. As an investor, you have a choice of various asset classes:
- cash (deposits in banks and building societies)
- government bonds
- corporate bonds
- index-linked investments
- alternative investments (such as art or fine wines)
- international investments.
The last four asset categories listed are outside the scope of this book, for the following reasons:
- Commodities are generally short-term and high-risk investments. Except for the companies listed on the London Stock Exchange where the main revenue ...