Camna membina portfolio
Hi Investor,
Good day,
When it comes to investing, “Buy Low, Sell High” is the one of the most common advice we can get. However, market timing is easier said than done especially when fear and greed typically lead investors to do the opposite way. As such, we believe that asset allocation plays an important role in investment. Asset allocation is an investment strategy that aims to balance risk and return by allocating the investment capital to different assets according to your goals, risk tolerance and investment horizon.
To us, there is no "perfect portfolio" but rather, a series of useful (and logical) guidelines to follow which should allow the construction of a portfolio commensurate with the levels of risk and expected returns the investor desires. A portfolio constructed on these guidelines offers a disciplined, logical approach to investing, with enough flexibility to respond to changes in the investment landscape, but also sufficiently passive in its approach to allow one to avoid sleepless nights spent worrying about one's investments.
1. SELECT A SUITABLE ASSET ALLOCATION
Two major asset classes, equities and bonds, form our universe of investment assets; bonds provide stability with lower expected returns while equities provide stronger returns with higher volatility
The allocation between equities and bonds is determined by the investor's willingness and ability to take on investment risk, which encompasses a careful study of factors like investment horizon, liquidity requirements and risk appetite
Alongside this, the desired investment return on the portfolio should be weighed against the acceptable risk to be undertaken to derive a suitable allocation between equity funds and bond funds
2. DIVERSIFY WITHIN EACH ASSET CLASS
Investing across different markets reduces country-specific risk and also allow the portfolio to benefit from global growth
Markets tends to have asymmetric returns. Global diversified strategy could let markets which outperform their peers help cushion or negate the markets which are lagging
Investors can invest in a combination of different funds which are local and also geographically diversified such as Malaysia, Asia ex-Japan, Emerging Markets, Global.
3. SELECTING FUNDS
Fundsupermart.com Recommended Unit Trusts Report 2014/15 is a starting point for investors to select funds from as it covers both equity funds and fixed income funds, and span across various global, regional and single-country markets.
The Fund Selector is also a useful tool to sieve through the wide array of funds available on our platform while the Chart Center allows for easy comparison of funds' historical performance
4. ONGOING ACTION AND MONITORING
We suggest a long-term approach for investments; however, do not forget about the portfolio after the initial investment is made
While our portfolio approach is relatively passive in nature, we suggest investors to rebalance their portfolios at least on an annual basis to ensure that the portfolio's allocation does not deviate too significantly from the intended target
With changing circumstances, an investor's willingness and ability to take on investment risk as well as the expected returns will change over time; therefore this may require adjustments to your portfolio allocation to accommodate these changes and ensure that the portfolio remains relevant
Please do not hesitate to contact us if you need any assistance.
Thank you and have a pleasant day.
Regards,
Eugene Lye
Client Investment Specialist
Hotline: (03) 2149 0567
Email:
[email protected]
.. tn alaphaone blh advise apa lg criteria utk select fund.. able to take high risk..
