What are Growth and Defensive Assets ?

Generally, asset classes can be grouped as Growth or Defensive.

Growth assets – Like shares and property securities, are mostly used to provide capital growth in a Portfolio.  They’re higher risk than Defensive assets, but usually provide higher returns over the long term.

Defensive assets – Like cash and fixed income, are generally included in a Portfolio to help stabilise returns, as income is often a big part of the return from these assets.  Defensive assets usually provide lower risk and lower returns over the long term.

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