Balanced investment portfolios usually contain four major components, namely, equity, debt, property and cash. Each of these has sub-sectors, for example, equity and debt may include local and foreign paper and property may include directly owned real estate and securitised real estate. The issue of the diversification of the portfolio continues to be of signal importance. The allocation of investment funds into the four asset areas is a specialist function whilst the acquisition of assets in each of the areas is relatively straightforward. Anecdotal evidence suggests that property, particularly directly owned property, is still considered to have too many disadvantages to attract more than a token allocation, usually around 10 % or less. Directly owned property and unitised property are discussed and compared with debt and equity. Specific investment variables such as volatility, management, depreciation and obsolescence are considered. Thus property is reviewed to assess its position in the asset allocation process
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