Friday, April 25, 2008

How to protect your portfolio - just a guide

1) AVOID LOW-RISK INVESTMENTS SUCH AS FIXED DEPOSITS.
- INVESTORS should allocate their portfolio to funds of various risk-return levels to generate returns the surpass the growth of inflation.
- INFLATION is at 4%-6% in urban areas. Returns on FDs is 3-4%. It means your money is losing its value of 2% per annum. Investing in mutual funds or other instruments are recommended.

2) BUY PROPERTIES AND HOLD FOR A LONG-TERM as properties is the one of the best investment vehicle that help to hedge againts inflation.
- Plan to own a property or investing in property related funds such as REITS, Mutual Funds and etc

3) LOOK FOR MODERATELY RISKY ASSETS such as EQUITY UNIT TRUST and DIVIDEND YIELDING stocks that can provide higher returns.
- Funds with proven track record and reputable fund management company is essential.

4) ACQUIRE COMMODITIES-RELATED securities that will benefit when commodity prices increases.
- GOLD, CRUDE OIL, PALM OIL. How to venture. Well you may not do so directly but via various schemes that allow you to participate.

REMINDER: CONSUMER GOODS ARE GETTING EXPENSIVE. INFLATION AT THE RISE..

remember, the above is just a guide and suggestion based on magazines and atricles by experts. It may or may not suitable for you. For clarification, you may call 012-3290026 / 016-2215364

No comments: