1.

Asset Allocation

Allocate your investments across different asset classes:

• Equity funds
• Mixed asset / Balanced funds
• Bond funds
• Money market funds

2.

Diversification

Build a diversified portfolio by spreading your investments across various markets. E.g. for equity funds:

• Global / regional / country-specific / domestic
• Sectoral / thematic
• Large / mid / small market capitalisation

3.

Rebalancing

Adjust your investment portfolio periodically to realign it to your intended asset allocation to ensure that your investments are on track to help you meet your long-term financial goals.

4.

Invest Regularly

Investing a fixed amount of money on a regular basis helps to:

• Ride out the ups and downs of the stock market in the long run
• Inculcate a consistent savings habit
• Reduce the risk associated with a single large sum
• Mitigate emotional decisions and avoid market timing

Check out our Direct Debit Authorisation (DDA) facility.

5.

Invest for the Long Term

Investments require time to grow. You will be amazed by the power of compounding on your investment returns if you hold on to your investments long enough.

1.

Don’t put all your eggs in one basket

If there is only one or two funds in the portfolio, a potential decline in the performance of a particular fund will have a substantial impact on your overall portfolio’s return.

2.

Don’t try to time the market

It is impossible to consistently time the market’s tops and bottoms. Therefore, investors should not attempt to do so through the frequent buying and selling of funds.

3.

Don’t perform frequent switchings

Frequent emotional switchings may negatively impact the portfolio’s returns; not only due to the switching costs, but also because of missed opportunities during market uptrends/rebounds.

4.

Don’t make emotional decisions

Fear and greed often fuel irrational decisions, leading investors to engage in frantic buying and selling amid market fluctuations.