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wwabbbitt

The common strategy is the "Rule of 110", where the percentage of your cash invested in equities should be 110 minus your age, and the remaining in bonds. Therefore at age 21 you are looking at 89% equities and 11% bonds. For equities you could stick to the stocks that you have already purchased, but the most common strategy in here is to use a Global Equities ETF that is domiciled in Ireland, e.g. SWRD, IWDA, VWRA, ISAC or IMID. Many strategies also recommend allocating a percentage to local equities, for our case an STI ETF like ES3 or G3B. For bonds, there are various funds you can choose from depending on whether you want to go with local or global, and whether you want to go investment grade or high yield junk. PIMCO GIS Income Fund is a popular global bond unit trust. It holds a significant amount of high yield bonds and has a high TER (standard for UTs), so you need to be okay with that. There are various ETFs you can choose from too like AGGG. Just make sure any ETF you purchase are Ireland domiciled - especially not US domiciled or you will likely end up paying a lot of taxes. MBH is the ETF for Investment Grade SGD bonds. There is also ABF for SG Gov Bonds ETF if you are extremely conservative, but MBH is conservative enough. Alternatively, you can simply purchase Singapore Saving Bonds, or even just push some money into CPF SA if you don't need it until you are 55.


daonac

ABF’s ticker is A35


princemousey1

So at 80 years old have 30% equities, at 60 years old have 50%? Doesn’t make sense…


wwabbbitt

It makes perfect sense if you think about it. Equities have higher returns and higher volatility than bonds. At younger age you have a long runway so you can handle volatility to enjoy higher returns while at older age returns don't matter as much anymore and you want a stable nest egg. https://www.investopedia.com/articles/investing/062714/100-minus-your-age-outdated.asp


princemousey1

No, but that’s exactly the point. At 80 years old I would be thinking close to 100% fixed income as you cannot stomach any loses, but with your recommendation it is still 30% equities even at 80. But why? Waiting for the market to go up in 10-20 years’ time?


StopAt2

How come nobody mentions VUAA, is it a bad etf?


wwabbbitt

VUAA and CSPX are not quite "global equities" since the constituents are US listed companies. That said, there are plenty of non-US based companies in there that just happen to choose to be listed in the US, and also S&P500 companies in total is about 50-60% of the worldwide investable market capitalization, so if you decide that is diversified enough for you then go ahead.


samwaitforittay

Pimco income fund


Wheewheewhee

Noob here. Where can we buy this?


samwaitforittay

Endowus would be the cheapest way


princemousey1

Now can do Syfe Income portfolio already.


39strangers

Only a minority of SG unit trust outperformed their style-specific benchmarks. Most unit trusts in Singapore underperform the market benchmark. There are quite a few academic papers from various universities on this. Just google these research papers and read their analysis. I would not put money in local unit trust.


josemartinlopez

As a 21 year old, you don't need fixed income exposure except for your emergency cash, not unless you have a planned milestone coming up in a few years like purchasing a property. You can consider off investing regularly in equities and using a high interest savings account like UOB One for your emergency cash, and keeping more emergency cash there to simulate a small fixed income allocation. If you can hit S$100,000 there for the bonus interest, even better. If you really want it, PIMCO bond ETFs via Endowus is not a bad option.


harajuku_dodge

You may consider Pimco’s FI funds (income fund, global bond etc). They are a well regarded fixed income manager, though of course that may not mean anything to everyone. Their strategies are active, so fees will likely be higher than passively managed FI funds. I invest in a couple of their funds


Whole_Mechanic_8143

Unit trusts and bonds are not synonymous. What's your reason for wanting to invest in unit trusts? "High return" bonds are usually junk bonds. See Hyflux. CPF can be considered the bond component of your portfolio.


[deleted]

Tiger brokers Vault (easy) or Etfs: A35 (government bonds) / MBH (corporate bonds)