Closing a SMSF

QUESTION OF THE DAY: core and satellite investments

Core and satellite investing is a strategy that involves dividing an investment portfolio into two parts: the core and the satellite.

The core of the portfolio consists of investments that are designed to provide a stable and reliable return, such as bonds and other fixed-income securities.

The satellite of the portfolio consists of investments that are designed to provide higher returns, but may also be more risky, such as stocks and other equity securities.

The goal of core and satellite investing is to balance the risk and return of the portfolio, by providing a stable and reliable return from the core investments, while also allowing for the potential for higher returns from the satellite investments. The allocation between the core and satellite portions of the portfolio will depend on the investor's goals, risk tolerance, and investment horizon.

Core and satellite investing can be a useful strategy for investors who want to balance the potential for higher returns with the need for stability and reliability. It is important to work with a financial planner or other professional to determine the appropriate allocation between the core and satellite portions of the portfolio, and to regularly review and rebalance the portfolio as needed

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