Investment FAQ – What’s the Difference between Defensive and Growth Assets?
Some assets are classified as Growth assets and some are considered Defensive. Growth assets tend to be those whose returns can grow over time, such as equities and property.
The risks on these types of assets are that there is no guarantee of capital being returned. Defensive assets on the other hand tend to pay fixed returns. Cash and fixed interest instruments are the most common defensive assets, and are defensive because there is an explicit commitment to have capital returned to the investor at a given point in time.
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