facebookIf I have $10,000 now, how would you suggest if I invest it with AutoWealth? Do I go all in? - Seedly

Anonymous

18 Apr 2019

Robo-Advisors

If I have $10,000 now, how would you suggest if I invest it with AutoWealth? Do I go all in?

Discussion (2)

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I believe in not putting all your eggs in one basket. Maybe put half and the remaining in other instrument. Once you are confident with its performance, u can put more in that investment vehicle.

Tai Zhi

07 Jul 2018

Chief Investment Officer at Autowealth

There are some financial literature out there regarding whether an investor should invest all-in or time-diversify his/her investments over time.

Empirically, financial markets generally appreciates over time. Therefore, an investor faces material opportunity cost for not investing his/her full investible assets. The risk for an investor investing all-in is the small probability of experiencing a market correction immediately thereafter.

On balance, the benefits of investing all-in outweigh the risks. Therefore, the most rational, calculated investment decision will be to invest all-in.

That said, it also depends how well you can manage your emotions psychologically if in case the risks does materialise despite you taking a calculated rational investment decision.

If you feel more comfortable, you may want to commit 50% at the start and commit the remaining 50% over 2-3 quarters to mitigate the probability of meeting a market correction shortly after the initial 50%.

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