By their late thirties, most people would have reached a point where they can at least start to accumulate funds that can be classified as savings, especially if they have had financial support from their parents, or if both the spouses work.
The need to save and manage your assets can arise at any time and in a number of other settings. But it just so happens to be that while people may have savings lying around, they hardly ever know what to do with this money.
Popular Investment Avenues
The well-known methods to make savings grow include savings accounts with high profit rates, buying bearer bonds, and investing in commodity funds, such as gold.
Each of these avenues have major drawbacks, which people do not seem to notice since they are considered frequently used investment pathways.
Savings accounts will not protect your capital or savings from inflation and currency fluctuation, bonds will keep your capital protected but are not considered a wise choice for growth, and commodity prices and funds have come to be known as bad choices owing to frequent volatility.
This does not mean none of these avenues will suit investors, large or small. Rather, each investment avenue has unique characteristics that will drive its appeal in a certain economic scenario, or depending on your risk appetite, and even age.
Diversification And Personal Standing
Wanting to jump onto the popular bandwagon can be very tempting, especially when certain stocks of funds become popular across the market. But people have to be able to resist these inclinations, keeping in mind your place in the market.
Young investors can get by with a high-risk appetite for example; they have obligations only to themselves and can make up for losses later. Middle-aged and older people on the other hand, will have a number of obligations that can double as investment goals (children’s education, financing a home).
In the latter case therefore, it makes more sense to side mostly with bonds that with shares.
This is where seeking professional advice and service for asset management in Singapore - GlobalEye can help. These companies can periodically review your investment portfolio and advise on the changes you can make depending on changing circumstances or the economic environment.
Allocation
The choice of which shares to buy is not necessarily the most important investment decision you’re going to make, unless you’re a broker. As an investor, the most important concern ought to be the overall mix of the assets you invest in, that is, how much of this should be stocks, bonds, and cash.
