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Developing an investment strategy

What's your investment objective?

It's important to have a clear, precise investment objective. Your investment objective should consider factors such as the level of income or capital growth you're seeking to achieve, and for what purpose. You'll also need to consider your risk appetite when developing an investment objective.


Consider what your investment timeframe is. If you have a long-term investment timeframe, you may have more capacity to ride out any market downturns, and so could consider investments with higher risk / higher return profiles (such as shares). If your investment timeframe is short, you may need to be more cautious.

Asset allocation

Diversifying across asset classes may protect you against underperformance in any one asset class. Your asset allocation will reflect how cautious or aggressive your investment strategy is.

Determine how much of your portfolio you want in each of the asset classes (cash, bonds, property and shares). It's important to rebalance your portfolio throughout its life to ensure that your asset class weightings continue to be appropriate for you.


Illustration shows there are 4 main investment types: cash, property, fixed interest and shares. Share types include retail, mining, finance and others.

Decide what investments you’ll allow yourself to make

Determine the types of investments you are happy to make, and those that you won’t make. For example, will you invest in speculative mining stocks, or stick to big, well-established companies only? You can revisit your investment objectives over time and adjust accordingly with your skill level and risk appetite.

Have a risk management plan - and stick to it

Identify the risks to your investment strategy, and how you’ll mitigate those risks. Risk management is one of the most important steps when establishing your investment strategy.

Accessing information and assistance

In this digital age we're blessed with access to a tremendous amount of information, research and tools that can help us to make investment decisions. If we don’t have the confidence to make investment decisions by ourselves, we can seek professional assistance.

Some of the tools available include:

  • Company research and stock recommendations
  • Charting and technical analysis
  • Economic research
  • News services
  • Watchlists and alerts
  • Financial planner or adviser.
Things you should know

The information on this website has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should consider its appropriateness, having regard to your objectives, financial situation and needs and, if necessary, seek appropriate professional advice. If a Product Disclosure Statement is available in relation to a particular financial product, you should obtain and consider that Product Disclosure Statement before making any decisions about whether to acquire the financial product. The information contained on this website does not constitute the provision of advice or constitute or form part of any offer, solicitation or invitation to subscribe for or purchase any securities or other financial product nor shall it form part of it or form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any securities or prices used in the examples on this website are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not a reliable indicator of future performance. This website may contain material provided directly by third parties. This information is given in good faith and has been derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, no company in the Westpac Group nor any of their related entities, employees or directors (together, "Westpac"), nor the Participant, accepts responsibility for the accuracy or completeness of, or endorses any such material. This website may also contain links to external websites. Westpac and the Participant do not accept responsibility for, or endorse the content of, such external websites. Except where contrary to law, Westpac and the Participant intend by this notice to exclude liability for material provided directly by third parties and the content of external websites.