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Have been monitored Nikko AM Singapore STI ETF quite a while, recently found out that it didn't perform well and lost not quite much. My question is:
1) Should I change to invest OCBC as I saw the news that OCBC is doing well?
2) How likely Nikko AM Singapore STI ETF will bound back and the chances to rise?
3) If I switch to invest OCBC, any advice on this stock as I am new to this stock? Any prediction on how well it will grow in next few month or years?
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Hi as what Jansen mentioned, i dont think its a good choice to sell Nikko AM and buy OCBC. And as others have mentioned, Nikko AM is a ETF which contains OCBC and other stocks thus its more diversified and 'safer' per say.
You didnt really mentioned how much you invested in Nikko AM and how much of 'unrealised loss' you are facing now so it'll be a bit hard for me to advise. However I feel that it's a high chance that it'll bounce back on track and your loss should be minimized (with regular dividends).
Here's my personal story/encounter. I started Nikko AM STI ETF as my first Investment thru POSB invest saver program. After the first few months the share price dropped quite a bit (about 5% loss in 2018) but I continued on as I feel that I could buy it at lower price (DCA to average down my cost/share). Lucky it rises back slowly and earlier this month I sold it off at a 2% profit on share value (excluding the 2 dividend payouts profit)
Lesson learnt over here is that you need to trust and believe in your decisions. Dont let market noise affect you. If I was affected previously by the drop I would have an REALISED LOSS of 5% instead of having a profit of 2%. Even though i wont say 2% is alot but its still better than making a loss.
In short, HOLD whatever you have till it bounce back. Dont make UNREALISED LOSS into REALISED LOSS.
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Jansen Ng
11 May 2019
Business Student at Ntu
In my opinion, i wouldnt drop one for the other. But if u wan, you can rechannel new funds according...
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Since equity investing can only judged on longterm (investing at lest for 5, bette still 10 years) maybe you still cannot claim Nikko's laccking success.
At least it is diversified, singe stock investing (OCBC) should be discouraged.
Nobody can and will know how Nikko STI bounces back.
Nobody can know the development of OCBC's stock price.
Maybe You would like to chose SP500 or MSCI World investing via passive large time-honored indexing ETFs. Cheaper, liquid, more diversified, more successful performance.