Saturday, July 24, 2010

Diversified Porfolio of Asset Classes

OK-ok. saya dah hutang sangat lama entry untuk topic 'Asset Allocation' ni.

intro: For more than 2 decades, PM has been Malaysia's largest private UT company with long standing experience in fund management. The company currently offers various types of funds to cater for the asset allocation needs of their unit holders.

the Basic Facts of Asset Allocation:
  • the asset allocation refers to the allocation of investments among different asset classes in the portfolio to meet specific objectives.
  • there are different types of funds such as equity, fixed income and money market funds provide investors with exposures of different asset classes.
  • the weight of each asset class in an investor's portfolio will depend on the investor's risk tolerance and investment time horizon
  • other factors investors should take into consideration include investment objectives, age profile, financial needs and changes in personal circumstance.
  • to begin, investor should determine their personal assets allocation and seek advice from financial professionals on which funds are suitable for them based on their risk reward profile.

Source: 'Point of view' column  taken from The Bulletin January Issue.

The DO's and DONT's of Asset Allocation:
  • DO tune asset allocation to long-term goals and objective
  • DO review and comapre past performance of different asset classes
  • DO review your portfolio's performance periodically (advisable every 6months-1year) to ensure it is in tandem with your long-term investment objective
  • DON'T buy and sell assets rashly (investing should be done in a peace of mind)
  • DON'T panic when there is a sharp move in markets
  • DON'T time the market as it is impossible to do so

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