Switch 50% of investments into the Balanced Fund

Dear Mr Tan,

The global equity markets, and in particular China, have hit new records in the last few months. There is an increasing risk of the so-called "bubble bursting" especially in China, where valuations are simply unsustainable.

I have a substantial holding of the "growth" combined fund. Given the state of the equity markets today, would it be advisable to switch to more defensive funds and if so, what you would recommend.

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REPLY:

Recently, my wife and daughter decided to switch 50% of their investment from the Singapore Equity fund (100% in Singapore equities) to the balanced fund (50% equity, 50% bond). I decided to keep my investment in the growth fund (70% equities, 30% bonds).

Pick your choice.