- Many investors seek income from dividends, but are concerned about capital losses. It is possible to protect your portfolio. This report will show you the current market costs.
- Investors can implement “do it yourself” equity protection for effective risk management. The ASX offers investor education at their web-site.
- We calculate the annualized cost for ‘blue chip’ higher yielding stocks based upon current market conditions, varying the duration of protection and capital at risk. Market conditions are constantly changing.
“As you approach retirement it's prudent that you consider reducing your exposure to riskier assets like equities and increase exposure in safer assets like cash/bonds. However with current interest rates and the benefits franking credits provide via shares it is something that is seldom done.
Overweight holdings in shares expose your retirement savings to market corrections, a lesson learned the hard way for many during the GFC.
There is a valid alternative that allows you to continue to receive franking credits and benefit from share price appreciation but protects your portfolio from large market corrections.
Purchasing protection from the options market can help”