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Consider shares, property investors told

Long-term data on investment returns should surprise property investors, says Camelot Financial Group, a financial advice firm.

Chairman Peter Christensen  said shares and equities consistently outperformed property as an investment in figures published by Gosvenor Research, which showed investors with a portfolio of shares were more than twice better off than those who focused solely on property.

Data compiled proves equities have consistently outperforming property for almost three decades; even during tough times.”

The Grosvenor data said investors experience 11.2% growth in equities compared to a 9.2%growth in property returns from a $10,000 investment made between 1971 and the end of 2011.

“Long term, regardless of events such as the 1986 share market crash and 2008 Global Financial Crisis, NZ, Australian and World equities, all experienced greater growth than residential property’s 9.2%, the figures for equities are 11.2%, 11.5% and 10.5% respectively.”

He said: “If you own your own home, to get the best long term returns, you should spread your risk across other investment choices such as Kiwisaver, unit trusts, managed funds and bonds. Many investors were utterly surprised by the facts, as investment decisions are often made on emotion and family traditions, not scientific fact.”

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