Portfolio activity, May 2010

The latest portfolio activity happened in May. It was scheduled in April but was postponed due to travelling in overseas.

According to my asset allocation plan, I needed to top up US asset class. But after allocating the required amount from my fresh fund to the US asset class, there was some, but not much, surplus left. I could allocate this surplus to the asset class that almost reached the bottom threshold of its allocation, which was Asia Pacific ex Japan.

In the end, I topped up only the US asset class with all the fresh fund to save time and commission, since the top up of Asia Pacific ex Japan by the relatively small surplus did not change much the allocation of all asset classes.


2 responses to “Portfolio activity, May 2010

  1. Hi Choozm,

    Need your advices on investing, I do not know much about investing and stocks but I do know if I leave my money in the saving account I will eventually lose money. I have about USD$50,000 and SGD$30,000 cash to invest over a period of 20-30 yrs. Can you advice me what I should do? Or can you draft out a portfolio for me? My CPF-SA will be use as fixed income. House is fully paid and have set aside $1k-$1.5k a month for investment use.

  2. Hi James,

    Thanks for reading. First of all, I suggest you draft a asset allocation plan (a portfolio plan). You can follow this guide at http://www.sgfunds.com/index/viewtopic.php?f=32&t=2587 . As the asset allocation plan is unique for each person, it is best if you read up more on books about it or engage a qualified financial adviser, so that you can tailor the plan to your needs.

    Second, I see you have two portions of money to invest–one lump sum and one monthly investment. Once you have your asset allocation plan, you will be able to invest the lump sum according to the allocation but I suggest to do it over a period of few months (6-12 months) to minimize the regret of buying at peak. For the monthly investment, invest it in the asset class that is under the target allocation, so to maintain the allocation.

    Finally, you keep the most from your investment when you keep the cost low, tune out the distraction from financial news and stick to a well-thought plan. Also refrain from timing the market and chasing over hot stocks/funds.

    Hope this helps.

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