Started an Equity Portfolio

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:

  1. MapleTree Commercial Trust
  2. Singtel
  3. Comfort Delgro
  4. SPH
  5. SingPost
  6. SMRT
  7. CapitaMalls Asia Bond (3.8%) through IPO
  8. Nikko AM STI ETF
  10. 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

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

This entry was posted in Financial Management. Bookmark the permalink.

2 Responses to Started an Equity Portfolio

  1. YH Tan says:

    Hi uncle Lim,
    Any reason for having both Nikko AM STI ETF and SPDR STI ETF?

    • limkimtong says:

      When my daughter started investing, SPDR STI ETF was a Specified Investment Product (SIP) and therefore cannot trade in them. Nikko AM STI ETF was not SIP then (i.e. an Excluded Investment Product) and she bought into it. Subsequently, SPDR STI ETF became EIP status and hence she bought it.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.