You might assume the best investment is always the one that delivers the highest return.

Sometimes, though, certainty about what the future might hold for your investments can matter more than whether they are at the top of the performance tables.

Here are a few reasons why the value of certainty can sometimes be overlooked, and what you might want to think about if it matters to you.

Why confidence and predictability matter to many investors

If you’re a growth investor with a lot of time before you need your money, you may be willing to take a bit of risk to get a higher return over the long term. Markets can move around, and you have time to wait out downturns.

Many investors are not in that position, though. They might be relying on investments to provide income or to get them to a short-term goal.

For those investors, having confidence that their investment is likely to perform in a certain way over the near term can be more valuable than the promise of higher returns in the more distant future.

If you’re buying a house in six months’ time, for example, and know you need your $100,000 investment to pay the deposit, you might prefer a 2 percent guaranteed return with no risk of loss to your capital, rather than the possibility that your investment might return twice that, or more, but could also temporarily fall in value as markets fluctuate.

How risk tolerance can change over time

Your view on whether certainty or performance matters more will likely change several times throughout your life.

As your goals evolve and your circumstances shift, your tolerance for risk may change too.

Ensuring your investments align with your risk tolerance will be key to helping balance the right amount of predictability with the potential for growth.

What about the emotional side of investing?

Investing can involve a lot of emotions, and these can also affect your decisions about the assets that are right for you.

Some people value the peace of mind that comes with greater certainty, even if they could theoretically afford to take more risk. This is something that you could discuss with your SHARE adviser. In some cases, those concerns may ease if the strategy that best suits your situation and goals involves taking on a little more risk.

In other cases, it may make more sense to align your investments with what feels emotionally comfortable so you can stick with your plans over time.

Everyone places their own value on things like predictability and stability, but we can help you work through your options and determine an approach that works for you.

“Enough” can matter more than “More”

Sometimes what matters most to investors is the confidence that their strategy will deliver the outcome they need. They may be less concerned with whether they will exceed their goals.

This can be particularly true for people investing to support their retirement income.

In that situation, you may value the certainty of having enough to retire on more than the possibility of ending up with a lot more—especially if that option involves greater risk along the way.

We can help you work out what matters most to you and the ways you might get there.

For some, certainty and predictability can play an important role in supporting long-term financial wellbeing.

Want to talk?

If you’d like to discuss what you want your investments to deliver, give the SHARE team a call. We’re experienced investment advisers who can help you weigh up your options and think about an approach that fits your situation, both practically and emotionally.

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.