A moderate investor would not typically invest directly in the share market. Shares are recognised as being higher risk investments, particularly if they are not included in managed funds that offer the benefit of diversification through the inclusion of other asset classes such as property, fixed interest and cash.

A moderate investor would generally invest in a managed fund of a balanced nature, ie approximately equal holdings of growth assets (shares and property) and conservative assets (fixed interest and cash).

By investing in managed funds the moderate investor is allowing a team of appointed experts to manage their holding, in investments chosen by them according to fund guidelines.

Moderate investors generally seek some capital growth despite some instability in returns.

Direct investments

• Australian and international shares
• Direct property or property trusts
• Fixed interest and cash

• Balanced or Growth
• Approximately half of their managed funds would typically be invested in growth assets
• Remaining funds would be directed towards property trusts, fixed interest and cash (for diversification)