3 min read I Date: 23 November 2022
It’s that time before we close off for the year-end holidays. But before you take that break, you should allocate some time to review, rebalance and reset your investment portfolio.
Why is it important you may ask?
2 reasons: risk management and improved returns
Performing financial review is an exercise that will help you assess your progress and adjust your plan. As you progress in life, your goals and aspirations change too. On top of that, you will need to factor in the changes in the current economic climate.
For example:
Equities throughout the year have not been performing as well as we may expect and if your current investment strategy allocates 80% of your assets in it, you might want to reconsider your allocation moving forward for 2023. You may refer to the views from our experts to help you thread your investment strategy for the near term.
When should you consider rebalancing your portfolio?
The general rule of thumb is to review and rebalance at least once every 6 months or once every quarter. Here are also 3 scenarios you can consider before rebalancing your portfolio:
- Changes in your risk profile
- A shift from your asset allocation strategy
- Achieving your financial goal(s)
Of course, this is not a journey you should embark on your own. Investing decisions can be complicated, confusing and daunting, especially when it is your future that is at stake.
What to do next?
Use these tips to thread your path for 2023. Rebalance and invest with us through our online investment portal. From now till 12 December 2022. You can earn 1.11% reward (one-off) for 3 months and stand a chance to win attractive rewards. Terms and Conditions apply.
Learn more: https://www.principal.com.my/offer/year-end-giveaways
Disclaimer
Please be advised that investment in the relevant unit trust funds, wholesale funds and/ or private retirement scheme carry risk. An outline of the various risk involved are described in the relevant Prospectus, Information Memorandum and/or Disclosure Document. You are advised to read and understand the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) before Investing. As an investor you should make your own risk assessment and seek professional advice, where necessary. Among others, you should consider the fees and charges involved. The registration of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) with the Securities Commission Malaysia (SC) does not amount to nor indicate that the SC recommends or endorses the funds. A copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document including any supplemental thereof and the Product Highlight Sheet (if any) may be obtained at our offices, distributors or our website at www.principal.com.my. The issuance of any units to which the relevant Prospectus, Information Memorandum and/or Disclosure Document relates will only be made on receipt of an application referred to in and accompanying a copy of the relevant Prospectus, Information Memorandum and/or Disclosure Document. Securities Commission Malaysia does not review advertisements produced by Principal.