Monday, September 17, 2007

Diversification and liquidity

Which will yield a better return over the next 20 years?

* STI ETF
* Genting International Shares
* Freehold private property

REPLY:

I prefer the STI ETF as it is well diversified (compared to an individual share) and has better liquidity (compared to a freehold property).

1 comment:

Anonymous said...

It depends on your risk appetite .
In term of risk ETF is least risky.
Genting is the most risky and of the three property is second risky .
On risk adjusted basis I think ETF will have the best sharp ratio.
The risk return relationship is positive. High return requires high risk.No free lunch.

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