We have another three weeks to the end of 2013. The Straits Times Index (STI) was down 1.67% from the start of the year (3,114 points at 6 December). So how is the performance of my portfolio, which was invested in stocks, REITs, retail bonds, and preference shares?
Through the year, I received dividends, coupons (interests) and profits made on sale of stocks. Between end of 2012 and this year, my portfolio was increased by further purchases than sales of stocks. Have I done the right thing by actively managing my portfolio?
I add up all cash received resulting from income and realised capital gains (sum denoted as X). I then deduct the paper loss (between current valuation and cost of purchase) from that sum X. With this net amount, the rate of return was 2.41% on average total portfolio costs.
Had I stayed passive and did not invest in Singapore stock market and place the portfolio in bank fixed deposits, I would only get about 1.0% per annum. This is lower return from active investing.
Singapore stock market was a difficult market this year. It was really challenging to make good return.
Copyright © 2013, limkimtong for Living Investment
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