Back in March 2011 when my daughter was already 21, we started an on-line stock trading account for her. The reason is that we wanted her to start accumulating some known stocks and bonds listed on the Singapore Exchange. Stocks, bonds, REITs and ETFs are investments that could provide yearly returns and capital appreciation over longer period. Instead of keeping cash in the bank, it is better to invest some of this cash balance in these financial assets as they offer higher returns.
More than three years had passed, how did we do on this portfolio?
The Straits Times Index moved up from 3,067 points in March 2011 to 3,314 as of yesterday (+8.0%).
Her portfolio was 19.5% higher than costs. Dividends and coupons received since 2011 was 9.3% on current cost of the portfolio. (exceeding 3% per year).
The portfolio includes:
- MapleTree Commercial Trust
- Comfort Delgro
- CapitaMalls Asia Bond (3.8%) through IPO
- Nikko AM STI ETF
- SPDR STI ETF
- CapitaMall Trust Bond (3.08%) through IPO
When investing starts at a young age, we hope to impart good investment habits to my daughter. In the end, she has to take it from there and grow her investment on her own. At least, the basics were already taught.
Copyright © 2014, limkimtong for Living Investment
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