HIGH-net-worth individuals need to understand the relationship between risk and return to maximise investment potential, an investment analyst says.
Richard Harris, chief executive of Jardine Fleming Private Investments, described the average HNW person as someone with more than US$1 million (HK$7.73 million) to invest.
Many clients, having created wealth through business ownership or property, were confused as to how to protect and invest assets.
'If you look at most investment information, it is difficult to read,' Mr Harris said. 'Part of what we try to put across is that it is not a simple business. But there are some simple concepts.' Mr Harris said the JF investment line focused on the relationship between return and volatility.
Simple banking products such as a savings account represented a good starting point for investment with low risk and low return.
At the high end, individual stocks could provide high yields but with high risk. In the middle was a balanced investment portfolio.
