What is your view on diversification? What would you recommend to diversify in Singapore's market - to maximize returns and minimize risks? - Seedly
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Anonymous

Asked on 11 Sep 2018

What is your view on diversification? What would you recommend to diversify in Singapore's market - to maximize returns and minimize risks?

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Jason Sin
Jason Sin
Level 8. Wizard
Answered on 15 Sep 2018

I would recommend diversification in different markets such as US, China etc and in different instruments such as shares, bonds etc. Do not keep all the eggs in the Singapore basket.

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Penny Chong
Penny Chong
Level 5. Genius
Answered 2w ago

Diversification is always key!!! Diversifying will ensure that your risks are spread and you do not bear any unsystematic risks, which are unnecessary risks that will not give you any returns.

Any good investor will tell you that there is no way to stock pick and beat the market. Hence, always put a significant part of your portfolio in global markets like the s&p500 to have an almost guranteed positive return y.o.y! ​​​

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Frankie Aufhauser-Rappaport
Frankie Aufhauser-Rappaport
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Answered on 04 Mar 2020

Diversification is always very important. Singapore is only a small player.

when it is a major global/asia banking hub, the banking sector on a global view (particularly Europe) a sector at risk, possibly Singapore banks have an edge because of fast tech innovation/implementation. I would be cautious though.

as to Singapore: For me the Singapore REIT sector (S-REITs) seems the most favorable and I'm investing not in single REITs but the dividend distributing (more than 4% currently) Lion-Phillips S-REIT ETF. good luck !

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Heng Kai Le
Heng Kai Le

2w ago

This is so helpful 👍
Heng Kai Le
Heng Kai Le

2w ago

Thanks for sharing your thought process. After I read your comment, I came across the trend of biotechnology development to care for the elderly on my IG. What a coincidence. Maybe it’s a sign from the Universe haha
Jay Liu
Jay Liu, Diploma in Accountancy at KHEA
Level 7. Grand Master
Answered on 15 Sep 2018

Stocks, bonds, alternative investments like P2P lending, gold, cash. For stocks what kind of sector stocks are you looking at. Information technology, engineering etc. For bonds, corporate bonds or government bonds etc.

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Gabriel
Gabriel
Level 8. Wizard
Answered on 12 Sep 2018

Do not put all of your eggs in a basket as per what YT has shared. For example in P2P lending, invest in multiple loans so that should one loan default, you will not lose everything.

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Lok Yang Teng
Lok Yang Teng
Top Contributor

Top Contributor (May)

Level 9. God of Wisdom
Answered on 11 Sep 2018

Diversification is to spread the risk so that you wouldnt lose all your assets if one sector falls. Some may argue that if you know what you are doing, you do not need to diversify. If you just starting out, diversification between sectors and asset type is recommended since market is always unpredictable.

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