Steady strategy better during low-rate period: Kinetic

Steady strategy better during low-rate period: Kinetic

Investors need to avoid acting rashly and should maintain a steady risk profile to avoid losses during the low interest rate and low inflation climate, says Kinetic Super.


In a note to investors, Kinetic Super chief investment officer Paul Kessell cautioned investors against changing their investment strategy to chase returns, saying that doing so can be a “high-risk decision”.

“These recent ups and downs should just be a reminder that shares are generally better suited to a long-term investment strategy, 5-10 years, so you can ride through the highs and lows, but really it all comes back to risk and how much you could lose before you start to lose sleep over it,” he said.

Mr Kessell also pointed out that some assets offer better returns in a low rate environment but advised investors to consider total returns as well as dividends.

“Stay true to your risk profile and keep the ship steady as you head towards your long-term goals,” Mr Kessell said.

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