Tuesday, July 31, 2007

How to apportion the investments?

Dear Mr Tan,

Is it a good time to invest in unit trusts, since the share price have shoot so high? If yes, what type of unit trust will you recommend?

How about placing the extra money in fixed return like policy? Example "Growth" policy from NTUC Income with fixed return for 8 years?

I have about $100,000 saving. How should be investment be apportioned?

REPLY

I suggest that you read this FAQ. Although the points were written three months ago, they are still relevant today.
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3 comments:

Anonymous said...

put everyhting into growth fund. no need to think lah. best fund of ntuc.

July 31, 2007 11:08 PM
Khiat Han Hwee Adrian said...

You have to understand your Time Horizon, Ability to Hold and your Risk Tolerance.

Get your Financial Adviser to help allocate your assets into Cash, Bonds and Equities. Thereafter, get him to select the good funds in the various asset classes.

I'm not an advocate of market timing, but I feel that its prudent to put a portion of your assets into a more defensive funds for the moment and review them regularly, say every 6 months.

Another method for you is to Dollar average your assets by putting in probably $5,000 monthly into a well diversified, low cost fund. $5k/month will spread over a period of 20 months.

August 03, 2007 1:39 AM
Anonymous said...

You have 8 years to your retirement and is long enough to venture into a moderate to high risk investment.
At this moment the markets may be a little uncertain; when it will get calmer we do not know.But don't imagine the worst.The market has NOT crashed.
The best approach now is to construct a portfolio, broadly diversified,this takes care of the volatility.I suggest you put all your $100k or split into two months. I don't advocate dollar cost averaging. It is an overly hyped strategy and very controversial and it is riskier when wrongly used.
The current market isn't that bad. If you have been following the markets the correction hasn't gone down more than 4%.The absolute number is frightening but the percentage change is still small.It is in the process of trimming the excesses and it is good.
Just get a GOOD adviser to help you.

August 04, 2007 1:08 PM

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