OPTIMISE YOUR STOCK PORTFOLIO
How many stocks do you have and is it time to get rid of the poor performers? SingCapital's chief executive officer Alfred Chia says: "Consider concentrating on high-conviction holdings and eliminating stocks that no longer align with your investment thesis." High-conviction stocks are those with the potential for delivering above-average returns.
You may wish to sell underperforming stocks but Mr Chia says you should evaluate the reasons for their poor performance before taking action.
A useful rule of thumb used in asset allocation in investment portfolios is "100 minus your age" to represent the percentage of stocks in your portfolio. The remaining percentage can be allocated to bonds or more conservative assets.
Mr Chia says: "The rationale behind this rule is to strike a balance between growth potential and risk management, adjusting the asset allocation as an individual progresses through different life stages. On approaching retirement age, preserving wealth and minimising volatility become more crucial than high-growth potential." So this rule can be a useful starting point; Mr Chia says the proportion can be varied depending on your risk tolerance level. Importantly, also consider how much time you can commit to doing research.
Over at financial advisory firm MoneyOwl, Ms Felicia Yeo, a senior specialist in financial literacy and solutions, recommends a 90/10 division for each new set of funds.
If there is $10,000 to invest, it means limiting your bets on crypto and special securities, for example, to $1,000. Within that $1,000, crypto should not be more than $500. The remaining 90 per cent can be placed in core, globally diversified portfolios to give you the best odds of achieving a sufficient, above-inflation return over the long run.
هذه القصة مأخوذة من طبعة January 07, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة January 07, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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