Asked 2w ago
I started off with $1000 for SA and Syfe, and plan to DCA $500 every month, for long term (10 to 20 years). Syfe only for REIT portfolio while SA will be ETF portfolio (currently at 14% risk preference).
You can look into index ETF on top of your robo. Yes, i understand SA do invest in US ETFs but SA 14% risk index contains very little US or international equities.
Examples of index ETF are S&P500 ETF, Vanguard total world ETF(VT) and IWDA. These ETF are diversified as they invest in different sectors or even countries. These ETF will allow your portfolio to have a higher percentage of US/ global equities.
The reason why I recommend ETF and not Mutual funds or unit trust is because ETF charges an extremely low fees(As low as 0.08% pa). On the other hand, mutual funds/ unit trust usually charges 1-2%pa (n MOST funds still fail to beat its index). Also mutual funds/unit trust charges an extremely high sales charges (up to 5%)
You should just use syfe for both portfolios, assuming long term if you don't want to learn doing it DIY, (which will work up to being maybe 50-100k+ cheaper in the long run), I feel that you should go for syfe's equity 100 + their reits, with more focus on their equity 100 as the 2 sectors are correlated, although reits can be seen as 'defensive'. When younger you'd want to go for more capital gains, and investing in the US market growth stocks will bring you more opportunities for capital gains, rather than local blue-chips/reits which are more for dividends. Just for eg. A 5% dividend on 100k is only 5k a year. I would prefer to have more dividends and have a more defensive portfolio when I'd have a larger portfolio. Thus, set your allocation correctly! Just my 2 cents.
I think its dependent on your portfolio, if you have 100% equity, I suggest adding some safer investments as a hedge. Since you have REITS portfolio and SA's ETF, these are actually quite okay since these portfolios are already diverse enough. You could (maybe) invest in the companies you love and is confident of to increase your rate of return (because youre not following the market returns and dependent on the volatility of the share price). Additionally, you can get some gold as a hedge but remember that you will lose some money when you buy due to premiums and spread. Hope this helps!
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