facebookHi , i have a Reits portfolio account with Robo syfe for 2 yrs. I entered during the starting of the pandemic, as of now i am down about 3k.Do you think i should hold on , or should i fully redraw - Seedly

Advertisement

Anonymous

29 Dec 2021

βˆ™

General Investing

Hi , i have a Reits portfolio account with Robo syfe for 2 yrs. I entered during the starting of the pandemic, as of now i am down about 3k.Do you think i should hold on , or should i fully redraw

Discussion (19)

What are your thoughts?

It depends on few factors that were not mentioned:

  1. what was your initial goal- Value addition + Dividends or just dividends. Reits would still be giving dividends.
  2. How much was total investment to deduce your loss percentage. Is that loss percentage within your initial risk appetite? if not divest.
  3. Do you need money urgently.....if you do then divest.
  4. Are there other options available? In current scenario where equity is being wiped out, options of bargain hunting are there.. however you would have to bear the bearish market for a while..before seeing any growth in Value. During that time Dividends are not guaranteed as well unlike Reits, where it is required distribute earnings with unitholders.

So I woudl suggest stay put... enjoy the dividends.

Only suggestion I would have given is basis some experience gained with Reits in Syfe Reit portfolio...start investing directly in Reits sometime in near future.

​

My individual REITs for dividends are down too as some of it was hit by COVID-19 and the recent M&A activities. My suggestion is to hold if you are not in need of cash.

You have to ask yourself what was the reason you invested in REITs in the first place. Was it for dividends or was it for capital growth? REITs may not do as well as growth stocks/ETFs but they tend to pay out decent dividends. If that was and still is your goal, you may wish to continue holding on to it.

​

Another factor is your risk factor. You mentioned that your portfolio is down 3k but without knowing the size of it, we would not know what percentage does 3k represent. It could be 10% for a 30k portfolio but it could also be 1% for a 300k portfolio. Assess your own risk appetite and see if the portfolio still fits with your overall investment strategy.

REITS is a dividend play. It's for income and not really capital gains as such it's best suited for a long term play.

​

Reinvenst the dividends gain and just keep at it. In 15-20 years time the monthly DCA and compunding effect will reap dividends (pun not intended). Over the long term as well prices tend to trend up so ignore the short term volatility and just think about the dividends in time to come.

​

All the best!

Endowus would be a much better option - up a lot more with dividends paid too....

Read 11 other comments with a Seedly account

You will also enjoy exclusive benefits and get access to members only features.

Sign up or login with an email here

Write your thoughts

Advertisement