DBS Vickers Securities
Asked on 20 Aug 2020
What about A35, VWRA, IWDA...? super overwhelmed but I really want to get started. Is it a good time now? Given the covid-19 situation. Please help.
Let me help you out a little here. I will base my comments on what investments you have suggested as I assume you have done a little bit of homework and respect your shortlisted options.
When starting out to invest, you do not want too much volatility (i.e wide swings) in your portfolio. Too much of it will kill you psychologically. Thus, start with a diversified portfolio that consists of assets all around the world. This leaves you with IWDA and VWRA. Both are rather similar with a correlation of 0.99933 (See below). Thus, just choose 1.
Next, your approach is to build in your position gradually through a Dollar Cost Averaging (DCA) method, can be monthly and quarterly. If Vickers charges a high commission, you got to increase your DCA horizon (eg. quarterly or semi-annually). Or comb through this forum for recommendations on good platforms.
After you start to own assets all around the world and pick up a few investment strategies along the way, you can start to look at other regions, themes and sectors and start drilling down into specific assets that you are good at. The more depth you drill down, the more specific your risk/return/volatility will be.
I have done up some charts for you based on what you have listed (See link below). Take a look and hope they help to give you some perspectives.
ISHARES CORE MSCI WORLD (IWDA LN Equity)_updated_200820
VANG FTSE AW USDA (VWRA LN Equity)_updated_200820
LION-PHILLIP S-REIT ETF (SREITS SP Equity)_updated_200820
NIKKO AM SINGAPORE STI ETF (DBSSTI SP Equity)_updated_200820
ABF SINGAPORE BOND INDX FUND (SBIF SP Equity)_updated_200820
Neither. Better off putting your money in a robo which invests in a diversified portfolio which can maximise your risk appetite for the most growth.
Looking at your options, it seems you are unsure of whether to take a growth or dividend approach. For someone young like yourself, go with growth since you have not amassed a critical sum of capital for dividend investing.
Lum Jun Xiong, Banking and Finance at Nanyang Business School
Answered on 25 Aug 2020
Given your age, I would suggest something that is higher risk with the potential of higher returns. You currently does not have much commitments to consider, like housing loan, children, retirement. Investing in STI would be a bad move because it does not increase much as compared to the US market.
How long is your long term, is it 10 years? You might want to answer that first.
Next, I would strongly discourage investing in STI and S-REIT. I would instead look for S&P 500 (e.g. VOO) or indices like for e.g. Vanguard Total Stock Market Index Fund (VTSAX) & Vanguard Total Bond Market Index Fund (VBTLX)