[Rate My Portfolio] Advice on Investment Portfolio

Grateful for any advice on how I can build up my portfolio - really should have embarked on this years ago and not now (in my late 30s)

Current holdings (embarrassed to say it's quite messy)
~11k combined in local bank stock (purchased during the Covid lows)
~6k in a REIT (ireit global), dividends so far so good
~6k across US equities in different EV component makers (to be very frank, no idea what i am doing here, feels more like a punt than an investment)
~recent 30k in Unit Trust (Fullerton Heritage income fund) on the suggestion of my RM, based on my risk appetite for income generation

I dabbled a little in Citi and SPY last year and cashed out a humble profit earlier this year although heart aches a bit when I look at the current prices.. clearly very poor at timing !
I cashed out a little for one of the local banks recently, was too tempting as I was deliberating if I should just hold-on long term; again not sure if it was the best of decision and points to my lack of experience with investing

Assuming 100K spare cash and a disposable cash flow of 2K per month I am willing to use for investment, what would a reasonable approach look like in terms of
1) Lump Sump
2) Monthly investment (akin to a RSP maybe?)

Risk appetite wise - I see myself as largely risk-averse and would like to see my investment as 80% geared towards income generation (e.g. dividends) and 20% capital appreciation (i.e. price increase). Picking individual stock is a bit of a difficult territory for me though as I am genuinely poor at it and do not have the luxury of time to do my homework so are there alternatives I can consider for cap appreciation ?

Thanks in advance :)

Discussion (8)

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Tan Choong Hwee

06 Jun 2021

Solutions Specialist at Providend

Better late than never. The best time to start is now.

Your current portfolio is reasonable. The local bank stock, REIT and Fullerton fund in your holdings are considered income portfolio (total $47K) and EV stocks are growth stocks. Your investment is already about 89% income 11% growth, not too far from your 80:20 allocation.

If you are not comfortable with your EV investment, you can liquidate them and add the proceeds to your investment capital.

And if you are not confidence in picking stocks, go for unit trusts or robo advisors.

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Ang Yong Ming

06 Jun 2021

Hello!

If you don't prefer individual stock picking, perhaps you can consider robos? Some robos like the Syfe Reit+ portfolio give out dividends too. These dividends can be distributed to you like passive income, or you can choose for the dividends to be reinvested automatically to take advantage of compounding for capital appreciation!

Because it is hard to time the bottom, I usually prefer DCA over lump sum investing, but that's for individual stocks. For your case, perhaps you can invest into robos lump sum first, and for the subsequent months you can add in a fixed amount (like DCA). But of course, you don't have to invest solely into one portfolio, you can diversify across different portfolios among different roboadvisors like Stashaway, Moneyowl, Endowus etc.

On a side note though, if you feel like you don't really have conviction in your EV investments, I would recommend selling them. Although the EV market is a growth market in time to come, it is rather volatile and I feel that in order to play the market well and maximise your gains, it is best to have an intricate understanding of the EV industry. I personally don't, and am not invested in any EV stocks. Instead, you can focus on investing comfortably in your areas of expertise.

Hope this helps :)

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