How can I safeguard my investment portfolio? Name withheld How can I safeguard investments from a bad economy? How can I save and stick to a healthy budget? How to proctect my assests from loadshedding?

I’ve researched a few unit trusts and I’ve noted that some funds indicate a maximum drawdown that can be high. What does this mean, and are there any precautions I can take to safeguard my portfolio?

Graham Lovely, Wealth Manager, PSG Wealth, Claremont, Cape Town, responds: Maximum drawdown (MDD) is an indicator of downside risk over a specified time period. A high MDD indicates relatively high-risk exposure within the portfolio, meaning the assets in the fund are risky and volatile, usually with the aim of achieving higher returns.

There are precautions you can take to safeguard your portfolio. However, it is the nature of the game in business and