I'm a fresh grad, looking to invest 30% of my salary ($1900 after CPF). If I'm considering investing purely into equities (e.g. STI ETF, Robo), what would you recommend my asset allocation to be? - Seedly
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Anonymous

Asked on 14 Nov 2018

I'm a fresh grad, looking to invest 30% of my salary ($1900 after CPF). If I'm considering investing purely into equities (e.g. STI ETF, Robo), what would you recommend my asset allocation to be?

I'll have around S$570 to invest each month. Currently already investing S$100/mth in STI ETF. Should I increase that, or what else should I invest in? As a context, I do not have much time / knowledge to analyse, monitor and buy/sell individual stocks, hence was looking more at ETFs.

Open to investing in assets other than equities too, please feel free to suggest / advise.

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Your asset allocation should follow your age as the % of monies in fixed income.

So if you're 25, have a 75 Equity 25 Bonds Split.

For your equities allocation, I'll set up to have a global exposure. I wouldn't even touch SG equities.

Split them into US, UK, EU, Asia, Japan, Emerging Markets. Your % of choice in each sector is up to you.

Also make sure that you're diversified across sectors as well. Not so heavy into tech and financial even though they're very appealing. Get some defensive sectors as well.

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Frankie Rappaport
Frankie Rappaport

06 Feb 2020

Take a cheap safe online broker like Ameritrade
Frankie Rappaport
Frankie Rappaport

06 Feb 2020

Bonds were traditionally highly recommended. Nowadays they are possibly a very risky choice, particularly the corporate bonds. the looked for inverse correlation with stock markets maybe is not significant anymore in the future. instead of bonds think physical gold (however small batches have relative high fees) all my private opinion, total losses possible with any strategy
Arpita Mukherjee
Arpita Mukherjee, Community Evangelist at Kristal.AI
Level 6. Master
Answered on 14 Nov 2019

Hi Anon,

There are plenty of safe ways to invest your money. You can go for REITs, other ETFs and bonds, but before you do that, I'd suggest you read up as much to understand what a Robo-advisor really does. Robo-advisory platforms assess your current financial position and recommend a portfolio strategy after reviewing your risk profile. These bionic advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees. And the best part is that they give you the most unbiased advice.

You can read here for a better understanding.

I work at Kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.

I hope this helps you make the right decision.

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MT2020
MT2020
Level 7. Grand Master
Answered on 26 Feb 2020

As you have a long time Ahead of you, you can consider increasing the amount you invest.

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Nicholas Chiam
Nicholas Chiam
Level 4. Prodigy
Updated on 07 Feb 2020

You should look out for ETFs from roboadvisors, particularly Syfe, Stashaway or Kristal. Since your investment amount is regular and small, you should avoid buying through even SAXO or IBKR cos the comission fees will eat up your portfolio.

Stashaway will invest your money in a combination of mainly US bonds/equities and gold, depending on your risk profile. It is good to have at least 2 portfolios of different risk profiles.

Syfe has the lowest management fee and they also have the SG REIT porfolio (Stashaway has it, but the minimum allocation is 10K SGD)

For Kristal.ai, they have $0 commission until you have 50kUSD of NAV. you can buy their custom portfolios or just buy certain ETFs like SPY, SPYG or VONG, VEA. Here you have more flexibility and variety, you can even buy Clean energy etfs like ICLN, FIW water resources etf or those in the tech sectors which bring higher returns when the bull market is still on. China ETFs can be bought there too.

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jul)

Level 9. God of Wisdom
Answered on 06 Feb 2020

All ETF strategy ultra-longterm:

VOO or IVV

MSCI World

S-REIT ETF

Scandinavia ETFs

(some physical gold, no bonds)

STI comparatively went not so well, though...

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Yang Teng
Yang Teng
Level 9. God of Wisdom
Answered on 14 Nov 2018

If you're keen to learn/make time for stocks, you can always start small first with blue-chip stocks. If really no time then you can try REITs/Commodities ETFs (including gold/silver).

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