I intend to invest $6-10k/yr in syfe, minimally 10 yrs. I have a $6k/yr endowment plan for 20 years, and do not intend to surrender it. How should I split my investment portfolio in syfe, and why?

Hi there! As other community members have mentioned, you may consider a 50-50 split between Equity100 and REIT+ for both higher capital gains and dividend income.

If you're comfortable taking higher investment risk, you may allocate more funds to Equity100. With 100% exposure to global equities, Equity100 aims to provide better risk-adjusted returns over the long term.

As you also mentioned that you are not a risk taker, another option to consider could be Syfe ARI portfolio. The Syfe ARI portfolio is designed to be a risk-managed portfolio consisting of a diversified mix of equities, bonds and gold. You can choose your preferred risk level, from 5% to 25% risk level.

For more personalised recommendations on your ideal portfolio allocation, our wealth experts will be able to help. Feel free to give them a call here!

Many useful insights here!

Here's my take: When choosing financial products, always look beneath the surface and understand the details. I invest in Equity100 too, but I would not place it in the very well-diversified category given that some 44% of the portfolio is invested into QQQ. As the recent tech sell off has shown, such a portfolio may be more risky and volatile. But if you believe that tech will continue to dominate the markets, then it's probably a decent portfolio to invest in. Still, don't forget currency impact as the dollar will trend downwards given the QE measures and low interest rate environment amidst the COVID-19 pandemic.

I understand that Syfe has committed to rebalancing Equity100 twice a year. Given that it is a new product, we will have to wait and see what happens at the next rebalancing. (Some analysts have pointed out that it may be time to invest in cyclicals.)​​​

Hi Anon!

I would like to share a less talked about point on diversification. Over-diversification can expose you to more risk than it reduces.

It is important, as Warren Buffett mentioned, to stick within our circle of competence. Buying into something we do not understand for the sake of diversification can actually expose us to more risk than we think. It is the same as investing in something we have not done our research about and did it because others are doing so.

Diversification is unique, there are many takes on it, some say use the formula

110 - age = % of stocks

More conservative portfolios like Ray Dalio's all weather portfolio has a mix of bonds, commodities and equities.

Other portfolios like Bill Gates, Warren Buffett, Cathie Wood, Adam Khoo, Bill Ackman and many more, are fully or mostly into equities only. However, within their portfolio, it is diversified into different types of stocks.

Diversification is important! I’m definitely not against it! But it is very subjective and I’m just trying to point out that even though many seem to say spread it out amongst equities, gold, bonds, that is just one view on diversification. There are many great investors that argue otherwise.

Ultimately, stick with what you have affinity to, know your risk tolerance, financial goals and circle of competence. Becareful investing into something for the sake of diversification if you do not understand much about that asset/market/industry/sector. It may cause us to make poor decisions in times of un-met expectations. i.e. sell when its low only to see it go up tremendously OR buy when its high and take ages to see any returns.​​​

Hey there!

similary to your situation, I'm currently investing in both REITS and equity100 too! I started off at the age of 27 with an endowment plan as well.

For SYFE's portfolio, I did 50/50 as well on REITS and equity100. I started off with REITS because I'm attracted to the dividend income and it felt more "safe".

but I decided to diversity into the US market as well because I feel that at my current age I'm able to take the risk. :D