Simple Investment Strategies

We have heard a lot of investment strategies been taught, advocate and preached by most of the investment gurus. Everyone claim that their strategies are the best and you should follow their lead. Articles, Interviews and Media has a lot to play in generating interest both in economic and investment news. We are bombarded with all kind of news, opinions and holy grail in investment. How can we decide which is important for us and our needs when we do not have the slightest idea how to choose or guide us to make an informed decision. Let us take a simple kindergarten class and see how we can emulate the atmosphere of learning investment to these kids learning environment. You remember Arnold in "Kindergarten Cop". The first day is a daunting experience both for the kids and Arnold. You know that the whistle was the one that instil discipline and order to the class. We need that whistle in this investment world and what is the whistle. It is call for discipline and order. I would say that would be your monitoring system. You need to know what you are buying and understand how to look after what you are buying. How many of you have questioned your adviser or consultants to show you whether they are monitoring your investment or not. 

So what you need to know is that how much you have save and invest your money. How is your investment performing now. What is your asset allocation. What is your asset annual return and how much did you pay in annual expenses. Lastly how much you pay in taxes. Who is monitoring all these facts and figures for you. Are they in your finger tips. 

It thus a fundamental fact that money can grow and in investment you can either earn interest, or investment that pays dividend and lastly investment that you sell for a profit or capital gains. Therefore investing is about choices and monitoring your choices.

EXAMPLE OF AN INVESTMENT STRATEGY FOR SINGAPORE INVESTORS

The example below is a one year period from 14^th September 2007 to 14^th September 2008 where the market is experiencing a very volatile period.

Example one:

If we were to invest $10,000 using our CPF in just one fund

Aberdeen China on 14.9.07 you would have purchased it at $1.48790 excluding 5% sales charge. You will get about 3193.17 units.

Presently the price of the investment is $2.3316 and thus your investment is valued at $7445.19 which is suffering a loss of 25.54%

Example two:

 If you were to invest $10,000 using Strategic Asset Allocation System your investment would look like this:-

Aberdeen China: $5000 you would purchased it at $1.48790 including 5% sales charge would be 1596.58 units.

First State Dividend Fund: $3000 would give you 1915.45 units

DBS Enhanced Income Fund: $2000 including 1.5% sales charge would give you 1650.37 units

Present value of investment:-

Aberdeen China: $3722.58

First State Dividend Fund:  1992.06units inclusive dividend 4% total value 2336.50

DBS Enhanced Income Fund:$1997.48

Total Value of Investment: $8056.56 which is suffering a loss of 19.43%

Example Three:

 If you were to invest $10,000 using Dynamic Asset Allocation System which you constantly adjust the mix of assets as markets rise and fall and the economy strengthens and weakens, then your investment will look like this:  Target return: 15% plus purchasing 25% below market value

No fund should be purchased at that valued because all of them are overvalued on 14^th September 2007 except to invest the investment into DBS enhanced income fund: $10000 valued at $1.19367 to get 8251.86 units.

Total investment valued at $9987.39 which is a loss of only 0.12%

Our investment strategy uses both fundamentals and technical analysis to give an objective decision on our client investment. Furthermore, our main focus will be the reduction of costs and fees for the client. We will direct our effort to give a better than average return to the client and promise that before you invest with us, we will teach you our investment methodology so that you truly understand why you are investing your money and you will take charge of the decision. We are merely guiding you towards making a more responsible decision for your life.

Call me at 91811147 or 63362001 ( Abdul Razak, Manager IFA Representative) at no absolute obligation even though you have invested your monies somewhere else.