Friday, 15 May 2015

Sample Global Investment Portfolios using Cash, CPF, SRS









Sample Global Investment Portfolios (using CASH, CPF and SRS)


I've been posting rankings of Top Global funds for a while now and some people are wondering how exactly these funds perform in an actual portfolio. 

In general, not all funds listed under the top 10 list are the funds that may be recommended to be part of the an individual's portfolio. The reason behind this is that some funds may not have a long track record, the fund requirement is too high for a retail investor or simply the fund is outperforming because it is taking a lot more risks than it's peers.

In the examples below, I have given several portfolios funded using different methods. The most common method is using CASH while the other two (2) methods are only available for Singapore based residents. All portfolio returns were taken on April 20, 2015.

Some definitions and background of the other two (2) methods:

1. CPF stands for Central Provident Fund which is a social security savings plan. It is a compulsory comprehensive savings plan for working Singaporeans and permanent residents primarily to fund their retirement, healthcare, and housing needs. 

I met quite a number of Filipinos who are already Singaporeans or Permanent Residents and are not aware that they can actually still grow their CPF to outperform the savings rate given by the government as a default scheme.

Filipinos who are Permanent Residents or Singaporeans are eligible.

2. SRS stands for Supplementary Retirement Scheme. It is part of the Singapore government’s multi-pronged strategy to address the financial needs of a greying population to save more for their old age. It is a voluntary scheme to encourage individuals to save for retirement, over and above their CPF savings. The SRS offers attractive tax benefits and is operated by the private sector.

Contributions to SRS are eligible for tax relief. Investment returns will also be tax-free before withdrawal and only 50% of the withdrawals from SRS are taxable at retirement. More information can be found in my other article: "How Investing Can Save Up To 100% Of Your Taxes At The Same Time (for Singapore based Filipinos)"

Filipinos are eligible to participate in this scheme whether they are Foreigners, Permanent Residents or Singaporeans.

SAMPLE PORTFOLIOS

Sample 1: CASH

This is a diversified portfolio using CASH as capital. It only started around the first week of February 2015 and has an aggressive profile. Note that the owner's Russian fund is already up 30% while the China fund if up more than 16%. 

Portfolio Age: ~3 months

Sample 2: CPF

This portfolio is also a diversified portfolio using CPF. It started around 18 months ago (October 2013) with a balanced profile. Note that the client's China fund is already up 48%. All funds are now in positive territory except for one. Almost half of the funds are showing double digit returns.

Portfolio Age: ~18 months

Sample 3: SRS (Balanced Profile; Lump Sum Only)
This portfolio is using SRS (Supplementary Retirement Scheme). It allows individuals to reduce their income taxes while investing. It started around 17/18 months ago (October/November 2013) with a balanced profile. This is a "safer" fund, a bit boring but it is consistent. It's a unique fund as it is like a mutual fund of mutual funds. Suitable for busy people who just wants their money to grow without monitoring their portfolio too much. 

Portfolio Age: ~18 months

Sample 4: SRS (Aggressive Profile; Lump Sum with monthly contribution)
Sample 4: This portfolio is another one using SRS (Supplementary Retirement Scheme). It started around 14 months ago (February 2014) with an aggressive profile. Client placed a lump sum amount then contributes 1,000 SGD monthly. It has now generated almost 14% returns. This fund is similar to Sample 3 but more aggressive. It can still be considered a "safer" fund, a bit boring but it is consistent. It's a unique fund as it is like a mutual fund of mutual funds. 

Suitable for busy people who just wants their money to grow without monitoring their portfolio too much.

Portfolio Age: ~14 months

All the best to your investing! 
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1 comment:

  1. I want more and more articles and blogs please post soon such informative information.
    here

    ReplyDelete