What is the best investment for you? Is there such a thing as best? How do you go about choosing one?
The best is only found in the rearview mirror. Therefore best is only known when you’ve passed it and you can look behind. So best cannot be predicted into the future. The way forward should rather be determined by what is appropriate for you and your circumstances. This often is more about investing appropriately according to your lifestyle needs taking your risk profile into account, rather than setting out to chase the highest returns.

For example, someone who has a few years to retirement should not be 100% exposed to shares as there is a considerable downside risk of losing capital which should be there to provide for income.
At the same time, someone in their mid 30’s wishing to build up capital over 10 years will probably do well to save monthly into shares through a unit trust or exchange-traded funds.

This points to realistic expectations measured against one’s circumstances. A function of financial planning.
Some ideas on how to manage one’s expectations and plan appropriately.

It’s all about risk versus returns. A successful plan is not based on the highest returns achievable. In fact, you may be exposed to far too much risk relative to your situation if your returns are too high. High returns do pay off more times over the long term but in the short term, they sometimes don’t. This is why we advocate shares for the long term.
Therefore the plan is all about appropriateness. Where are you now in relation to where you want to be financial?
As a rule of thumb
Short term 3 years – conservative
Aim:
To protect capital, beat current interest rates after tax, and keep up with inflation.
Money market, bonds, capital protection investments, segregated funds

Medium-term 5 years – moderate
Aim:
Diversification across all asset classes to beat inflation by 3% after tax and fees
Unit trust balanced funds,

Long term 10 years – assertive
Aim:
Optimum exposure to equities to beat inflation by 6% after tax and fees
Unit trust equity funds, Exchange Traded Funds, shares,