Prudent Growth with Low- Volatility Equity Investing

Prudent Growth with Low- Volatility Equity Investing

 

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    Key takeaways

    • In order to fund liabilities, achieve retirement goals, or meet other investment objectives, many investors need the capital appreciation that equities can provide, but are concerned about downside risk.
    • Despite the empirical history of low-volatility equity investing, many investors mistakenly equate low downside risk with low returns. 
    • By providing exposure to the potentially higher returns of the equity market, and at the same time mitigating downside risk, low-volatility investing addresses a significant obstacle to equity allocations.
    • Low-volatility equity portfolios are typically constructed using historical data and can lack forward-looking estimates of risk and return, which fundamental research can provide.

    This document is issued by FIL Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”). Fidelity Australia is a member of the FIL Limited group of companies commonly known as Fidelity International.

    This document is intended for use by advisers and wholesale investors. Retail investors should not rely on any information in this document without first seeking advice from their financial adviser. This document has been prepared without taking into account your objectives, financial situation or needs. You should consider these matters before acting on the information.  You should also consider the relevant Product Disclosure Statements (“PDS”) for any Fidelity Australia product mentioned in this document before making any decision about whether to acquire the product. The PDS can be obtained by contacting Fidelity Australia on 1800 119 270 or by downloading it from our website at This document may include general commentary on market activity, sector trends or other broad-based economic or political conditions that should not be taken as investment advice. Information stated herein about specific securities is subject to change. Any reference to specific securities should not be taken as a recommendation to buy, sell or hold these securities. While the information contained in this document has been prepared with reasonable care, no responsibility or liability is accepted for any errors or omissions or misstatements however caused. This document is intended as general information only. The document may not be reproduced or transmitted without prior written permission of Fidelity Australia. The issuer of Fidelity’s managed investment schemes is FIL Responsible Entity (Australia) Limited ABN 33 148 059 009. Reference to ($) are in Australian dollars unless stated otherwise.

    © 2021 FIL Responsible Entity (Australia) Limited. Fidelity, Fidelity International and the Fidelity International logo and F symbol are trademarks of FIL Limited.

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