Returns versus volatility
It's a general rule that you should expect greater returns from your investments if you are prepared to take on greater risk. Risk is often measured by the way investments go up and down in value. The more they do that the greater their 'volatility' - and the more reward investors expect for putting up with such uncertainty. Volatility in a nest egg portfolio is something you should expect. But it needs to be managed. You can reduce the risks of volatility by having investments that you don't have to sell when the market is down.
Over longer periods, cash tends to provide the most certain, but lowest, returns. Next up the risk/return 'ladder' are fixed interest investments such as bonds. Above them comes property, then finally shares - which tend to be the most volatile.
You need your sleep
If you're lying awake at night worrying about your investments, you're probably in the wrong ones.
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