One way to decide whether your investment is worth keeping is to look at the return on investment (ROI) over a period of one year.
In its simplest form,
ROI = Dividend Income or Interest income / cost of investment
Capital gain or loss on sale of investment is excluded from the ROI.
The following investments/funds distribute income to investors. All investments are in Singapore dollars without the risk of exchange loss.
|Investment type||Return (%)||Remarks|
|Templeton Global Total Return Fund||6.02%|
|BlackRock Global Multi-Asset Income Fund A6||5.55%|
|DBS Preference Shares (4.70%) on SGX||4.70%|
|LionGlobal Singapore Dividend Equity Fund||4.33%|
|BlackRock European Equity Income Fund||4.03%|
|OCBC Preference Shares (4.00%)||3.86%|
|CapitaMalls Trust Bonds (3.08%) on SGX||3.08%|
|SIA Bonds (3.035%)||1.51%||Half Year|
|UOB Structured Deposit 2015 Series 1||1.88%|
|OCBC Interest rate linked Structured Dep (1.88%)||0.94%||Half Year|
|Singapore Equity + Reits + STI ETF (own selection)||2.55%|
Almost all investments had return of investment above 3.00% with the exceptions of two structured deposits with the banks (at 1.88%).
My own selections of stocks, Reits and STI ETF traded on Singapore Stock Exchange could only manage 2.55% return.
Note that I did not consider the current values of these investments. It can be lower than the cost you had acquired them in the past. The current value fluctuates especially during period of volatility. In making decision, you could also consider the current value of the investment. So you have both ROI and current value of investment when making buy/sell or hold decision.
I made reference to my blog post on 23 December 2016 for this post.
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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.