As cliché as it sounds, the principle, “don’t put all your eggs in one basket” makes sense to investing our money in the long-term.
Asset allocation helps us to spread our investments across different asset classes such as investing in a business, investing in propriety, liquid investments such as stocks, high-yield bonds, REITS, dividend funds, and foreign stocks as well as bonds, physical precious metals, jewellery and cash.
Since different asset classes have imperfect correlations, i.e. when some asset classes perform better while others fluctuate, asset allocation can help our overall portfolio to maximize return while minimizing the volatility of our portfolio.
Talk to your financial consultant about asset allocation and once a year, re-balance your holdings of bonds and stocks in your portfolio as market conditions call for different strategies.
If you want to kick-start your journey to investing, call Claire at 8186 7459 for an obligation to find out more about investing or obtain an objective review of your investment portfolio today.
Important Notice and Disclaimers:
Nothing in this material constitutes personalized investment advice. Information provided here should not be considered as advice or as an offer or enticement to buy or sell or trade. The contents of this material, including any financial data, information, opinions and analysis, are strictly intended for educational use only.
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Should you choose not to seek such advice, you should consider whether the investment or insurance product in question is suitable for you.
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