PFF Panel 2
Seedly PFF 2019
Asked by Anonymous
Updated on 18 Apr 2019
What investment instruments would you recommend
I have shared this during last Saturday's panel.
The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again.
(1) Start low risk, build confidence before gradually increasing portfolio risk
Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation.
(2) Invest broadly to diversify away risk
Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss.
Therefore, try to start off with a globally-diversified portfolio of stocks ETFs and bonds ETFs with a higher allocation to bonds ETFs. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds ETFs 40% global stocks ETFs) before switching to a portfolio with higher risk.
Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/