Tuesday, May 09, 2006

I moved to Global Equity

I have $120,000 of my CPF savings invested in the Combined Fund (Growth) and Singapore Equity Fund. I have just decided to switch these investments into the Global Equity fund.

Here are my reasons.

1. The forecast PE ratio of USA and UK are expected to drop by about 15% to below 16 times. This suggest that earnings may increase by 15% during the next 12 months.

2. The forecast PE ratio of Singapore is likely to increase by 15% to above 16 times. This suggest that the earnings of Singapore companies may drop by 15%.

3. The Singapore market has done very well up to now. It is moving up further, after the general election. I decided that it is time to make a switch.

I continue to have other investments in the Combined Fund (Growth) and in other funds that are invested in Singapore equities.
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2 comments:

Tan Kin Lian said...

Here is my reply to vivarevolution.

I have given my reasons for my decision to switch my investments. If the agree with the reasons, you can follow me.

You should take a long term view, when you make this switch. We discourage policyholders from making frequent switches to time the market.

If you are invested in a well diversified fund, such as our combined fund, it is usually not necessary to switch your investments. Unless, you have a specially good reason.

If you wish to consider making a switch, you should talk to your insurance adviser, or our consultant in our business center.

May 16, 2006 1:14 AM
Justin Lim said...

Hi vivarevolution,

I totally agree with you on the fund switch matter.

I think it is definitely not the smartest of all moves to just invest in 1 fund for 20 years (if that's the time horizone) and leave it to be subjected to market fluctuations.

Different Fund move in different direction. When Equity Funds are doing well, it would probably be safer to be in those funds compared to a bond fund.

While it is my believe to be invested for the long term, reviewing and switching funds once in a while would give your returns that little push.

As for the agents at the roadshow, forget about him/her. Just imagine, like what Mr Tan says, NTUC Incomes gives moderate commission to their agents. As such, each time you do a switch, they have to work. Since swtching is free, who is going to pay them to do all the paperwork.. hee hee. No commission, who wants to work? Worse still, investing is for long term. What kind of good service can you expect? Unless you con't to buy policies from them, lor =D

May 23, 2006 10:40 PM

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