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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Asked by 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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Question Poster

15 Nov 2018

Thank you! What channels would you recommend for me to go to, to invest in US, UK, EU, Asia, Japan and Emerging Markets? New to investing here. Is this only doable by a broker, or are Robo-advisors able to do that for me?
Hariz Arthur Maloy
Hariz Arthur Maloy

16 Nov 2018

Both platforms would have that option. Personally for Robos, I would look at FSM Maps.
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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Lok Yang Teng
Lok Yang Teng
Level 8. Wizard
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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