Hi, I am starting my investment journey and would like some views on portfolio allocation and my risk profile. I am 30 years old employed, am looking at average - moderate risk. I am looking at both capital appreciation as well as income investing (from dividends). Looking to start with 50k - 100K. My current plan is to allocate my funds to the following assets: Stocks - 40% REITS - 40% Unit Trust / Funds - 20% I would like to ask if the above allocation is reasonable.
40% stocks. What kind of stocks? The economy is intertwined. There are economic cycle for different phase of development or seasonal cycles (like O&G, shipbuilding, consumer goods etc) which can fall between defensive or growth (and higher risk). REITS are just 1 segment where you are like a landlord. Rising interest rates can be a concern for higher gearing REITS. Also rights issues, etc. REITS also have sectors from hospitality, industrial, commercial, residential. Unit trust and Funds are similar like stocks but doing a basket, and could be region/country specific. You need to read the prospectus and what sectors they are investing in.
Too many questions, so sorry if I can't give you an answer.
Yes, there’s is diversification between different investment vehicles. But you didn’t specify the allocaction wise for each mode of investment. For moderate risk, I feel you should invest more on blue chip and consumer goods sector, a small minority on small-mid cap stocks.