Asked on 01 May 2020
It is probably easier to do it on platform - if you have different investment horizon, and different risk appetites linked to these goals then you can have different goals with us.
Best thing with Endowus is that you can do CPF, SRS and cash investments all on one platform.
Hi anon, that's a great question!
Generally, if you have different investment objectives with different time frames, say saving for a house and saving for retirement, you can create two portfolios to meet those objectives. You can usually take higher risk with the objective that has a longer time horizon.
With Syfe, you can easily create multiple portfolios with different risk levels to suit your investment needs. If you wish to invest for income, you can also set up a Syfe REIT+ portfolio to earn dividends.
Thank you for this question. I've just answered a similar question and here is my answer :)
We recommend that you choose a risk level that 1) is in line with your risk appetite 2) commensurate with your investment timeline. You can definitely and should potentially have different risk levels or portfolios to meet you different goals.
1) You don't want to choose a risk level that is riskier and more volatile than you are comfortable with and end up staying up at night watching your phone or panicking and selling at the worst time - when prices are down.
However, you also want to make sure you choose a portfolio and a risk level that can potentially generate the returns you want to meet your financial goals.
We classify our portfolios using the StashAway Risk Index (SRI). This is the measurement we use to determine how much risk our system should expose you to, which then determines your portfolio’s asset allocation. We gave it our own name not to be fancy, but because it’s a specific application of a fairly common risk metric called Value-at-Risk (VaR).
To calculate the potential loss of a portfolio in a year, we use Value-at-Risk (VaR). At StashAway, we use 99%-VaR, meaning a portfolio has a 99% probability of not losing more than a given percentage of assets in a year.
Here’s an example: a StashAway portfolio with $100,000 SGD and a SRI of 10% has a 99% probability of not losing more than 10%, or $10,000 SGD in a year. In other words, there is a 99% probability that your portfolio’s value won’t decrease below $90,000 SGD if you select a SRI 10% portfolio.
2) In general, the longer your investment timeline, the more risk you can afford to take. Why? You have enough time to ride out the short term volatility in the markets, the corrections, the recessions, to hopefully end up with a higher long term average return that come with some asset classes.
If you have a shorter investment timeline, such as wanting to buy a house in 2-3 years, then you will potentially want to keep a larger proportion of these funds in a more protective asset classes like bonds.
Once you've selected your risk level, we generally recommend that you dollar cost averge into the markets instead of making a lump sum investment unless that lump sum investment is a small percentage of your net worth. The larger that propotion, the longer you want to spread out that dollar cost averaging strategy. This is one of our articles that can help you think through this :)
You can for stashaway... Stashaway allows u to set up multiple portfolios. My fren has multiple portfolios varying different risks... However it is 36% risk index that give the better returns.
Hope this helps.
We need to know more about you before we are able to determine which portfolio suits you.
Generally, an aggressive investor may not wish to invest too much money into a low risk portfolio. However, he may choose so for diversification purposes.
Likewise, a low-risk taker may not wish to invset too much money into a higher risk portfolio.
With no end to this, it will therefore depend on how to build a portfolio that you will be confident with.
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