Investment strategy

There are different theories to manage portfolio.

• Some will be really passive investing, DCA into index ETFs (random walk theory)

• some will split between bond / stock to achieve less volatility portfolio, which most robo seem to be doing (modern portfolio theory)

• For me i using formula theory (Not to be confuse with magic formula), because i have a clear goal how much i want at certain timeline, so i allocate to assets that can achieve my goal base on calculation and projection.

There are also core- satelite portfolio as mention by CH.

If you are new, and confuse maybe random walk theory is much simplier & provide you with strong foundation in your portfolio. Just DCA into s&p500 index, no need to think too much. When u are more experience, u can reconstruct your portfolio again base on your comfort level.

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Before you design an appropriate strategy, try to make your goal slightly more specific (eg retire by when and how much money needed). I'm currently 22 and my goal is to accumulate $4m by 40. I know it's rather ambitious but who knows, even if you shoot for the moon and miss, you may still end up landing among the stars. As such these are my basic guidelines underscoring my strategy:

• Still a student, no need for big ticket spending in the near future so I should minimise savings to give me more capital for aggressive investments

• 18 years left on my timeframe, so I can afford to invest more in assets that comes with a very long-term investment horizon (crypto)

• Aim for capital accumulation and appreciation, avoid passive income (more growth stocks, less dividend stocks)

Before you do stock picking, do make sure you're familiar with how the markets and businesses operate! It is crucial to always DYODD before picking your own stocks, otherwise robos/ETFs(which are more fuss-free) will be better suited for you. But I personally don't use robos or invest in ETFs, as I'm more of a concentration person rather than a diversification person. As for ILPs, I share the same sentiment as CH. It is something that I will most certainly stay away from hahaha

All the best :)​​​