Question

Which of the following can be described as a ‘defensive’ asset class? A. Australian equities B....

Which of the following can be described as a ‘defensive’ asset class?

A.

Australian equities

B.

Overseas equities

C.

Property

D.

Alternative investments

E.

Debt securities
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Answer #1

Equity investment are considered to be agressive Investment while Debt investment are considered to defensive Investment as they are focused over generating income but protecting Capital first.

Property can also have a reduction in value, though not as sharp as equity but it is not safer than having debt. So it is a moderate investment.

So the Answer would be ( E) DEBT SECURITIES are the defensive asset class.

Australian equity, overseas equity, property and alternative investments are not defensive in nature.

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