Asked on 04 Jun 2020
Unsure of the future of REITs...
Hey Anon! I have my Syfe account with their global portfolio. I have to say that I am heavily affected by the bonds as they have over 50% of it set to bonds. Given the current market that was affected by covid and USA Feds, I would say bonds are at a all time low. As for the Singapore REITs portfolio, I have yet to venture into it. However, from my perspective and understanding, current bond return rates are very low.
If I am in your position, for let's say a short term portfolio (3-5 years), I will consider going for full REITs. I believe offices will be fully open soon, malls will have increase traffic, this will increase the price of REITs value.
If for long term, say 10 years, I will consider the bond option. Mainly because bonds work well with longer investment period.
Just my 2 cents worth. Hope this helps!
Hi Anon, I'm on their 100% Reits portfolio now and these are some of the reasons for choosing it over the reits with risk management:
1) I want to maximise the dividends that I'd receive since Syfe is part of my dividend investment strategy
2) I have a longer term investment horizon so I can afford to take more risks (100% reits), which also in turn give me more returns once reits recover (which they are already on the path to)
3) I'm still unsure about their ARI mechanism, though I know they are supposed to reduce your downside risks. Not that they are not good but I need to be entirely sure of a product before I go in. I'd probably consider it if I invest in their global portfolio since its investing in overseas markets and things are more volatile and changing, but not much the Singapore a market (reits)
Syfe's reits portfolio is well diversified and their holdings with higher weightage are generally more resilient so I'm comfortable with it. If you need a referral code let me know, I can drop mine in the comments below :)
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