Total Return Approach to Investing

A Total Return Approach to Investing

A Total Return Approach to Investing begins with building a diversified investment portfolio matched to an investors risk tolerance. The portfolio may include stocks, bonds, real estate, commodities and other asset classes. When choosing the asset classes we focus on how the investment interacts with the rest of the portfolio to get the best combination of risk and return. We do not choose the investment based on whether it pays a dividend or interest. We are more concerned about the total return of the investment including capital gains, dividends and interest. In contrast, many investors use a Cash Flow approach, focusing on dividends and interest generated by the portfolio investments. This approach ignores capital gains and the opportunity provided by growth oriented investments. Learn more about this approach: