Asset allocation of investable funds is an important aspect of investments. One should not put all money in one basket. The risk is too high should the single asset collapses.
2018 turned out to be a volatile year for investments as anticipated at the start of this year. Hence, 38.8% still remained in cash and cash equivalent items. This was up significantly from 24.3% in 2017.
|Asset Mix in percentages (%)||10-Dec-18||Dec-17||Change|
|Equities (see below)||22.7||17.7||5.0|
|Insurance related investments||11.9||11.0||0.9|
|Cash & Equivalent||38.8||24.3||14.5|
|Equities – Singapore||15.9||14.4||1.5|
|Equities – Others||6.8||3.3||3.5|
Investments in fixed income and bond products came down from 47.0% to 26.6%. This was mainly due to the redemption of OCBC preference shares by OCBC. OCBC Preference shares were redeemed and returned in cash into my portfolio during the year. I have not invested this amount in any asset and it is still in cash.
Investment in Singapore equity was 15.9%, slightly higher than 2017.
Investment in overseas equity was 6.8%, an increase from 3.3% in 2017.
Investment in total equity was 22.7%, up 5.0% points from 2017.
Investment in insurance related products remained stable at 11.9%.
This was a cautious portfolio mix. Investments in equities and bonds were comparable (22.7% vs 26.6%). More amounts remained in cash because I did not want to risk my capital in a volatile investment environment.
Copyright © 2018, limkimtong for Living Investment
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