Investment is one of the ways of achieving some financial objective. The chosen investment instrument could be for maintaining the value, getting higher potential returns or having a income stream. This will lead to financial objectives like retirement, children’s education or financing a property purchase.
Investment returns have to commensurate with the risk. Higher potential return would naturally point to higher risk. Investment is not gambling. Neither is it speculation. Attempts like market timing, chasing after hot themes/stocks or following ‘hot tips’ is a everyday affair. The investor might succeed on the short term but could prove disastrous in the longer term.
Proper investment entails a proper investment portfolio construction and monitoring and not just simple one time product buying. A proper investment portfolio gives you the best chance of getting a good return and achieving your investment objective. Selling a product is much easier and consumers can be easily swayed with all the hype surrounding certain class of product at different periods of time. Remember the “hot” Technology fund just before the Dot.com bust in year 2000? How about the unbeatable China fund over the last 2 years? Before getting a product, consider how it fits into your portfolio.
Constructing an investment portfolio consist of selecting products from different asset classes to create a portfolio with the aim of achieving the investment objective. Different asset classes perform differently at different times. Some tend to be more volatile then others while some perform better during bear markets. No one can predict the future. With perfect hindsight, everyone is a great investor who can time investments accurately. It is the long term return that is important, not the boom this year and bust the next.
Examples of Investment Options
Unit Trusts – Also known as Mutual Funds, this is a form of Collective Investment Scheme (CIS) whereby money from investors is pooled to invest in equities, fixed income securities or other financial assets. The Fund may be managed by a professional fund manager (active managed) or tracks an index (passive managed). With more than 300 different unit trusts available on our platforms, we have a wide range of funds to cater to different needs.
Endowment Plans – Mainly used as a form of savings plan, endowment plans can be used for achieving that retirement fund or children’s education fund. Available to us are endowment plans with high guaranteed cash values suitable for the conservative investor.
Alternative Investments - Offering a different option, Alternative Investments offers non-traditional assest classes to investors looking to diversify their portfolio. Many options offer non-correlated performances compared to traditional asset classes and can provide good returns even in turbulent times like now. Choices include Hedge Funds, Managed Futures, Life Settlement Fund, Private Equitity and Traded Endowment Funds. Only available for Sophisticated or Accredited Investors.
Structured Notes - Structured with varying degree of capital protection, our range of Easy To Understand Notes stand out from the complex structured notes commonly available in the market. No CDOs, CDS or complicated credit events to be wary of. It is even fully customizable to meet individual investor’s needs. Only available for Sophisticated or Accredited Investors.
Portfolio Bond- Not a bond but an investment platform, this powerful setup offers investors a centralized tax efficient investment administration. A wide range of products including Unit Trusts, Hedge Funds, Stocks, Exchange Traded Funds, Bonds, Notes and even Fixed Deposits, can be held in a Portfolio Bond. Being an institution, investors can enjoy institutional rates offered through this platform that normal investors will not get to enjoy. Even the Fixed Deposit rates are higher! In addition, this powerful platform can even be designed to meet Estate Planning purposes for generations or help protect your assets from potential creditors.