Question

Comment on the following statement

A Lady has all of her superannuation invested in a single asset – a rental property. There is a common misconception that property values never decline – this is false. And in this example, there is nil diversification within the fund – and this exposes the client to risk. In my opinion, this is a poorly constructed superannuation fund and she would be much better off selling the property and using the cash proceeds to establish a diverse portfolio of investments.

Answer 1