Asked on 26 Nov 2019
What will be some good investments i can make, and what would be the effort required to maintain it?
Before investing, I want to be sure that what I invest is for the long term. It must be a solid business with long runway, despite whatever market condition it is. Effort required? Well you gotta do your extensive research & homework in the beginning, but once that's settled, probably just a review every quarterly to ensure the business is still as per what you are forecasting (or even better).
If you feel that is too much work still, you might want to consider Exchange Traded Funds (ETFs). These ETFs has a diversified pool of stocks, be it from the same industry or the top blue chips in the country (in Singapore, it's our STI ETF). That way you are auto-diversified already, and the only difference between individual stocks is that it's generally more safer? And with that, your returns will also not be as much as individual stocks per-say.
I wouldn't care about current market conditions if this money is invested for at least a decade.
Your investment horizon is the only true hedge against short term volatility.
So I'll still stick with my globally diversified portfolio and stay invested.
If you're worried about entry prices, you can opt to DCA this 10-20k over the next 12 months.
$10K - $20K would allow you to probably get 2-3 stocks, or a basket of UTs and ETFs.
If you want to invest with minimal effort, go for UTs or ETFs.
If you have time to monitor, you can select 2-3 stocks and continue to watch them.
If you invest for the long term, the current market conditions should not be something that you would worry excessively about, as long as you invest in the correct holdings, monitor and rebalance, then let the market do the rest.
Based on this kind of question, I feel i will just invest in STI ETF< my feel is that the aim is to put as little effort as possible but also to enjoy market upswings. STI ETF does exactly that for you to enjoy the movement of market conditons
First of all, before investing, you must have some sort of knowledge. You do not have to be an accountant in order to invest.
What i can advise is always invest in yourself and invest for the long term. Do not invest in any quick scheme investment where they offer you such as 20% ROI per month such investment.
How to look for good investment? For me, i invest in myself. I join courses and minggle with light mided people. This is where i get most of my investment ideas from!
Investing of cuz requires effort. That is why you shouldn't invest into too many companies because it is hard for you to follow up on.
Spend most of the time initially to look for high quality business. I can tell you this is where you will spend most of your time into researching about the company. Once you have understand and habe conviction into the business, then start to invest in it.
If you do not want to put in any effort, i can suggest you to invest in SPY index with dollar cost averaging method.
If you are looking to invest for a long term, then there is no need to be cincerned for the current time to enter the market. You investments should perform well in the long run. A good way to go about investing is to make use of a robo-advisor. It will create an optimal portfolio for you based on your financial goals and risk appetite. This will also enable you to invest without putting too much time into it as the robo-advisor will take care of your requirements.
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If these are long term savings that can be kept in investment for a long time, you can start by looking into some market ETFs. Those would be the one of the simplest and most straightforward type of investment that give you instant diversification and market return.
Before we start investing, it will be best to understand your objective. Here are some questions to help you:
What is your capital? In your case, $20k
How will you want to invest your capital? E.g. lump sum or an amount on a regular basis
How long will you want to stay invested? E.g. 10 years
What is your risk appetite? E.g. How do you feel about short-term volatility?
What is your objective for investing?
To determine if the market condition is favourable to invest, the question will be: Is there a right time to invest?
Accordingly, I have compiled a list of financial crisis and disasters since the 90s and every other strong reasons not to invest. However, the market has proven otherwise year after year.
Therefore, focus with the right investment strategy by knowing your investment objective. Then decide the tenure and decide if a lump sum or smaller amount works. Finally, invest into assets that suits your risk appetite.
Personally, I will split the money and invest over 15 years with the objective to fund my future kids' education. =)
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