Looking beyond the initial appeal of high-yield equities will be key to taking advantage of market conditions in 2013, according to Prescott Securities.
The financial advisory and stockbroking firm has warned that 2013 will be a year of uncertainty and opportunity and investors should look "beyond the glitter of gold" in headline yields to get the most out of next year's market.
"Investors all too often see high yields advertised in a range of financial products and invest without asking questions," Prescott Securities' senior economist, Alan Hutchinson, said.
"Now is the time to read carefully and for investors to truly understand how the income is being generated, digging past the attractive headline yields and instead looking for sustainable performance."
Prescott Securities has released its annual Ten Best Investment Ideas report which provides the company's analysis of the outlook for market conditions in 2013.
The firm has said that with signs of continued volatility throughout 2013, investors should look for quality investments with proven track records.
"The risk of meeting post-work income needs will increasingly become the responsibility of individual investors," Mr Hutchinson said.
"Successful long-term wealth creation in 2013 will come down to making well-formed, strategic investment decisions that take advantage of the evolving economic conditions."
