Changes in Asset Mix of Investable Funds in 2019

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. This is risk management in investing.

My asset mix of investable fund for 2019 is as follows:

Asset Mix in percentages (%) 12-Dec-19
Equities (see below) 15.8
Fixed Income/Bonds 27.3
Insurance related products 32.6
Cash & Equivalent 24.3
Equities – Singapore 13.2
Equities – Others 2.6

Equities exposure is 15.8%.
Fixed Income exposure is 27.3%.
Insurance related products are 32.6%.
Cash and cash equivalent are 24.3%.

This is a cautious asset mix. At my age, I am not taking a major risk in equities. Fixed income and insurance related products took up a big chunk at nearly 60%. My cash position is 24.3% of the portfolio.

Comparing with 2018

For this year, I had reduced my investments in equities by 6.9 percentage points from 22.7% to 15.8% of my overall portfolio. Equities are riskier assets and since 2019 is turning out to be volatile for stock markets, I had redeemed some equities to reduce my exposure.

Asset Mix in percentages (%) 31-Dec-18 12-Dec-19 Change
Equities (see below) 22.7 15.8 -6.9
Fixed Income/Bonds 26.5 27.3 0.8
Insurance related products 11.9 32.6 20.7
Cash & Equivalent 38.9 24.3 -14.6
Equities – Singapore 15.9 13.2 -2.7
Equities – Others 6.8 2.6 -4.2
22.7 15.8 -6.9

Investment in bonds and fixed income remained relatively stable at 27.3% of portfolio. Bonds and fixed income provide stable income during period of volatile equity markets.

In February this year, we invested in Premierlife Generation II, a life insurance policy administered by Great Eastern Life (GE). As a result, the insurance related investments went up by 20.7 percentage points from 11.9% to 32.6% of my overall portfolio. This insurance related investments form the biggest chunk of my portfolio.

Cash and cash equivalent is now down to 24.3% of my portfolio (from 38.9%). Much of the cash had gone to buy the life insurance policies.

Copyright © 2019, 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.

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