Where should I put my money?

FOR investors, the most important question at the start of a new year is how portfolios should be optimally positioned, and how assets should be most efficiently allocated. As always, the goal is to maximise returns and minimise risk. It sounds pretty simple, but it is not.

High stakes

In fact, accurately positioning portfolios for the year ahead is complex and challenging. Should an investor stay with the same allocations that worked last year? Or should they rotate into something different in the hope that it will outperform in the coming 12 months? Inevitably, the consequences of getting this call wrong is underperformance and even potentially capital loss. There is a lot at stake.