Investing for Yield means you are seeking income from your investment strategy.
There are several reasons why investing for Yield may be a great strategy, but fundamentally it always needs to tie back to your specific investment objectives. For example, it is typical for retirees to invest for yield given they need their investments to provide income to meet their living needs.
There are several options that exist to generate Yield from your investments. Below is a chart that reflects a large majority of them, including how they can typically perform from a risk return objective. The vertical axis reflects relative return, whereas the horizontal axis reflects relative risk.
A characteristic of investing for Yield is that it generally means lower risk, when compared to the pursuit of pure growth. However as this chart highlights there will almost always be a trade-off for higher returns, in the form of higher risk.
The way to determine the right investment blend is to consider short, medium and long term goals and objectives, personal risk profile and whether capital preservation or growth is the key investment objective.
Contact us to book your initial consultation with one of our Yield Advisors.
