Making the right choice and taking the plunge can be a daunting task. However, investing does not have to be difficult or unnecessarily complicated! Having the privilege of choices means investors are ultimately responsible for their choices.
Most investment-related materials usually carry the disclaimers implying the needs for investors to understand the instrument, risk involved, investment objective and small print.
Here are things to look out for if you fall into the following groups:
If you are a conservative investor
Fixed Income/Money Market Funds
For the cautious investor, these types of funds offer portfolio stability or minimal portfolio volatility, compared to an equity fund whilst seeking to provide a moderate and consistent income stream over the mid to long-term. Such funds are suitable for conservative investors seeking instruments that may outperform fixed deposits.
If you are a medium/moderate risk taker
Mixed Asset Class Income/Balanced Funds
These funds tend to have a mixed portfolio suitable for investors who prefer more stable investment returns or who are relatively conservative with a bias towards receiving regular income and meaningful medium long term capital growth. These funds invest primary in fixed income instruments that provide regular income as well as in high dividend yielding stocks to enhance income and returns on the fund.
If you are high/aggressive risk taker
Equity Fund and Most Offshore Funds
Equity funds can be equated to growth type funds which are suitable for investors who can tolerate fairly high risk levels to achieve their objective of capital growth, ideally over the mid to long-term. As with all investments, higher risk investments with higher portfolio volatility may potentially yield higher returns.
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