While volatility and the sting of short-term losses might leave you feeling anxious, it can be tempting to change how you invest in hopes of a better return. We understand that, money and emotions are closely tied. At this junction, we advocate you to avoid panic-actions and stay focused on your long-term investment goals and objectives.
Focus on what you can control
Since you can’t control market volatility, it’s better to spend your mental energy on factors you can control – such as the mix of your investments. A diversified mix of investment options may better align your portfolio with your tolerance for risk and may help smooth out the ups and downs of the market. Not all investment options go up and down at the same time.
Fixed income solutions can be an integral part of any diversified portfolio
Bonds are typically recommended, along with equities, as part of a diversified portfolio that helps spread risk over your portfolio.
Your investment mix may need shifting occasionally to keep everything in balance with your long-term goals.
The roles and benefits of fixed income funds in your investment portfolio
Potential higher returns compared to cash investments
Investing in bonds generally offers better returns than money market funds or bank instruments.
Generates a potential regular stream of income
By investing in bonds, you may receive a regular stream of income with a yield that is typically higher than the interest from a normal deposit.
Reduce risk to capital
Potential repayment of the original investment in bonds can help investors who are concerned about protecting capital to meet financial needs with greater certainty.
Lower volatility than equity investments
Inclusion of bonds may bring stability to your investment portfolio as bonds have lower level of volatility than equity investments.
Our thoughts on fixed income investments
(Asia Pacific ex Japan)
Keep calm and stay invested
We offer you the opportunity to invest in a mixed asset portfolio that combines growth and income and features global, regional, universal or Shariah-compliant options. Let us help diversify your portfolio to meet your long term-needs and risk tolerance. Here are our asset allocation models for Mildly Conservative and Moderate portfolios:
Let’s get started!
If you’re looking for some perspective and additional understanding of the market and how it impacts your long-term investment goals, please call and work with:
Your Principal consultant
Your bank relationship manager
Or, get started online with EPF i-Invest, which allows you to manage your EPF Account 1 savings quickly and conveniently.
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