Building your own Investment Portfolio does not need to be difficult. Here are five model portfolios you can start with.
Investors are always in search of investment instruments or outlets that would deliver reasonable returns but are less wearisome in terms of monitoring.
Building an investment portfolio is not really easy especially if you lack the investment foundation. Fortunately, there are a few established financial institutions that have designed the near-perfect solution to address an investor’s pressing need.
Usually, people who have set near-term, as well as medium-term financial goals, need assistance to balance their investment portfolios. Also, those who are planning ahead for retirement would want accelerated capital growth but with measured or controlled risks.
Learn how you can build an investment portfolio based on your risk profile.
The service to build your investment portfolio
One particular type of service that can help investors achieve their financial goals is the Discretionary Portfolio Management Solutions (DPMS). The service essentially answers the three main difficulties encountered by investors namely: searching for earning opportunities, deciding on which products to pick, and monitoring or analyzing the market.
DPMS caters primarily to individuals who want to augment their regular income or are starting to build wealth using their seed capital. The service relieves clients of the inherent pressures that come with investing.
By transferring the tasks to investment management experts, investors can go about their daily living minus the thought of losing their hard-earned money.
The 5 model portfolios to start with
When you decide to entrust your money to external financial advisors or portfolio managers, the first thing they would ask is your risk appetite. It is advisable that at the onset, you articulate in clear terms your risk appetite.
Let them know if you are a conservative investor or an aggressive risk-taker. Their investment decisions will always be anchored on the client’s preference and risk tolerance.
Here are the 5 model portfolios you can consider:
1. Conservative portfolio
Beginners with low-risk appetite would understandably stick to the safe side at first. The conservative portfolio is normally focused on income generation. Funds will be invested in fixed-income instruments such as Singapore-centric bonds and other high-yielding bonds. There is minimal if not zero equity exposure.
An investor with a conservative portfolio is assured of a steady and predictable income stream. The income generation objective is achieved.
2. Moderate-conservative portfolio
The moderate-conservative portfolio is ideal for investors who are a rung higher than the conservatives when it comes to risk profile. They tread the investment space in a cautious manner.
This portfolio affords those with low to medium risk appetite to generate stable income while earning a bit of windfall from equity exposures. The strategy is deliberate and restrained to a certain degree. Risks are not yet profound.
3. Balanced portfolio
The balanced portfolio typifies the well-adjusted investor. Exposures are always neutral which means their capital accumulation and income generation objectives are on equal footing.
Portfolio managers will distribute or invest the funds in equity and fixed assets on a 50/50 basis. However, the risks are higher for the investor with a tempered or medium-risk profile.
The client should already factor in market volatility or economic and political events that could diminish the value of the portfolio’s investments. But since the allocation is weighted, risks are still moderated
4. Moderate-aggressive portfolio
An investor with a medium-to-high risk profile is focused on accelerating capital growth while earning moderate income on the side. Because the risk forbearance is higher, the greater bulk of the portfolio would comprise various equities. Only a small portion of the funds will be allocated for fixed-income assets.
But the investor should realize that the probability of losing substantially is greater this time. The competency of the portfolio manager in choosing the type of equity investments comes into play. The objectives of the client can be achieved with a well-crafted investment strategy and proper execution.
5. Capital growth portfolio
The last portfolio model is reserved for the daring investor whose objective is solely on capital growth and nothing else. It’s the shortest route to build wealth but also the fastest way to burn capital.
The high-risk profile client fully understands the dangers if the portfolio manager would invest in growth stocks, emerging markets, and other risky asset classes. This type of investor is well aware of the investment dictum that the higher the risk, the higher the returns.
Figure out what type of investor you are
Before you venture into the investment space and build an investment portfolio, it is important to have a financial goal. However, the length of time you can achieve your target will depend largely on what type of investor you are.
Keep in mind that risk is ever-present in any investment undertaking. Also, you’re dealing with real money that in some cases, losses can never be recovered. Therefore, you need to figure out exactly your risk tolerance.
Once you’ve figured out the extent of risk you’re willing to take, the size of capital is relative. What is critical at this stage is to find the ideal service to help you plant the seed of financial wealth.
Start building your portfolio
All the portfolio models presented here have been proven to achieve the objectives of investors with differing risk profiles. If you’re still unsure how you will start building your investment portfolio the right way, seriously consider the Discretionary Portfolio Management Solutions (DPMS) that iFAST Global Markets (iGM) is offering.
The best thing about their service is that investors can have absolute peace of mind. You will benefit from the portfolio managers who will pinpoint investment opportunities, select the best financial instruments for you and monitor them thereafter.
The investment process is uncomplicated and devoid of pressure. So why gamble your hard-earned money when you lack the investment foundation? Let the financial experts take over while you learn to do your own financial planning.
So if you want a hassle-free investing approach to build your investment portfolio, their DPMS service is your only choice. Remember that your portfolio build up is aligned with your risk tolerance and financial objectives. Just capitalize on the service and be on your way to financial abundance.
Ready to get started with one of these 5 model portfolios with iFAST Global Markets?
Sign up for iGM’s Discretionary Portfolio Management Solutions (DPMS) now.