3 Investment Funds You Should Add To Your Portfolio
Covid is a word that many of us are weary of. This pandemic has caused an upheaval in our lives. The global markets slumped more than 30% in the first quarter of 2020. This threatened job security and business viability. Those who have never been through a pandemic were surprised at the growth of markets thereafter. Certain countries and sectors rebounded very well. We saw more than 50 percent percentage growth since the lowest point of the year. Of course, this was buoyed by the many stimulus plans by governments across the world. Here we would like to highly 3 interesting sectors you should include in your portfolio of funds- Unit Trust Funds specifically.
China Equities - I had invested RM100,000 since the inception of Principal Greater China fund in 2007. I had to wait for 6 long years before it broke even. How many people would have given up in the 1st 3 years? Do not be shy, put up your hands. After the 6th volatile year, it was a swift ride up. I had more than doubled my investment in 13 years (current value at RM270,000). My client who had saved RM500 every month since 2009 also saw his investment doubled. Why China? China handled the pandemic well especially with their stringent control over their people and their policies. They have recovered much earlier than many countries hit at almost the same time. We see their robustness in the way manufacturing has picked up since Jan 2020.
Global Technology Equities - honestly, as an oldie (older than 40) I find technology breath taking and moving in speeds beyond the swiftness of car speed improvements. Who would have thought that we would ride in cars with strangers or stay in their houses or have parcels magically appear at our doorstep? It is simply amazing and is this going to stop? I do not think so... we are addicted, hooked... we cannot imagine a world without Facebook, Amazon or Netflix. Soon, AI will know more about us than our partners. This is not to be feared but embraced. While tech “isnt so cheap anymore” there is much room to grow and it should not be ignored. The pandemic has accelerated the growth of these companies as no one really goes out to shop or eat anymore.
Bonds- Those who read the above and cringe that these are too aggressive for their liking, Bonds (especially Principal Lifetime Bond) remain a stable favourite at FinAIMS. Why? ONE: It is much better than Fixed Deposits returns. TWO: It makes our portfolio less risky should markets become more volatile. THREE: A great place to store our emergency funds. Bonds prices will increase as interest rates fall. The interest may fall further by 0.25% at year end to support the economy.
See the year to date performance of the 3 funds above as of Oct 2020.
Information from Principal Asset Management website.
Talk to us at FinAIMS on how you can get participate in these funds to make your portfolio more robust. We look forward to hearing from you and seeing you digitally (hey better tech growth) or physically (coffee sounds good).
Disclaimer: Do inspect the fund prospectus and product highlight sheet as part of your perusal of funds. Inspect the license number of the consultant for veracity.