Hello people, been learning on how to construct my FSM portfolio lately since I'm new in the UT market. As I know that diversification is KEY, building a well balanced (as per my risk appetite) portoflio is there crucial. However, I have a few questions and hope some of you gurus can help shed some light.

Assuming I only have a minuscule capital of RM3k to begin with (of which 1k is already devoted to Kenanga Growth Fund), I am planning to devote the remaining into into Bond fund (1k - eg: AmDynamic) and into an equity fund with global exposure (eg: Aberdeen Islam World fund). I am targetting a 60% equity and 40% bond portfolio in the near future. Assuming I follow my strategy above, it would mean 33% in Bond and 66% Equity, which I believe it is a comfortable range. Do you guys think this is a good strategy? Is it too Malaysia focused? Seeing both kenanga and am funds are domestic (i.e 66% domestic), do you guys think it's diversified enough?

Also, in terms of funds allocation, as I just began working, my income stream is still quite minimal atm, but I'm aiming to save at the range of RM1 to RM1.2k per month, so my question would be; should I use that 1k to acquire other funds to achieve a more diversified portfolio or should I just use that money and save regularly into those funds via the RSP program.

Speaking of which, what are your thoughts of the RSP program? Is it worth it to continuously top up abt RM200-300 into each of my respective funds, bearing in mind that there's always the sales charges involved? Or should I wait and accumulate more capital (and more importantly, experience) to see when is the right time to top up? I know that regular top ups are important to achieve Dollar/Ringgit Cost averaging but, with such minuscule amount, is it even worth it?

Sorry for the long winded post but I have been trying to read and gather as much knowledge as I can before asking any questions so I hope you guys could help cast some knowledge into a newbie like me! Also, if there are any funds that you guys think have more upside potential, please let me know too

p/s: I'm starting to regret devoting that 1k into kenanga growth fund but I still have some confidence in the malaysian market, although admittedly I was attracted by its ridiculously good performance over the past 2 years, which I believe seems to be coming to a downtrend now. Thoughts?

Thanks a lot peeeps and happy investing!

Thanks for the welcome! Will take note on the Amdynamic Bond fund. Well in terms of the Malaysian equity market, I am not expecting a ludicrous return but I am still relatively bullish on the overall market return within the range of 8-14%. I believe there's still some upside in the domestic market.

By the way, what fund is Chen Fan Fei heading now? Any brief insight about his background/achievements previously in Kenanga?

Yeah I definitely undersatnd this. Just wanna know the rationale of amount allocation lol. Just to clarify the above, you top up more if your portfolio is in the red right?

This post has been edited by ccm123: Feb 6 2014, 05:55 PM

Hello People,

Say I have 5k start up capital, I am aiming for the portfolio below and I would like to know what are your feedback on these?

Target:-

- Equity: Bond (70:30)
- Geographical: 1/3 in Global/DM, 1/3 in Malaysia, 1/3 in Asia Ex Japan

Portfolio that I gathered:

Bonds:-
- Malaysia/APAC: Amdynamic Fund = 20% of my capital
- Hwang Select Income fund (70% FI, 30% Equities) = 20% of my capital
This brings my net FI exposure to 33% of my total investment.

Equities:-
- Malaysia: Kenanga Growth Fund = 20% of my capital
- Asia Pac/EM Equity: AmAsia Pacific Equity Income (Tentatively) 20% capital
- Global/DM: Either 1) RHB-OSK Global Equity Yield Fund
2) RHB-OSK-GS US Equity Fund
3) CIMB-Principal Global Titans Fund
4) Aberdeen Islamic World Growth

If I allocate 20% of my capital to each region above that would bring my net equity exposure to 67%.

In terms of geographical allocation it would be, the estimated geographical allocation based on my capital would be:-

Global/DM - 20%
Malaysia - 36%
Asia ex Japan - 44%

So here's where I may need some advice on:-
1) How does the overall portfolio look in terms of my TARGET equity bond allocation and geographical allocation to my current portfolio above, i.e is the deviation too big?

2) I find it difficult to decide what APAC/EM equity or Global/DM equity to invest, anyone with any recommendation? For Global/DM funds, personally I think CIMB-Princial Global Titans fund seems quite good but the yield for RHB-OSK US Equity Fund seems to be the highest amongst the 4 choices listed above, still don't know which one to choose from

I am slowly building my portfolio and hope you guys can help shed some opinions on what you think of my current portfolio. Spent days trying to look for what portfolio and funds are suitable for me lol. Thanks sifus!

Oh yes, just noticed that :S effort wasted for studying the prospectus and scanning for all the bond funds lol


Thought 1: I didn't take into account my EPF to be honest, simply because its a portfolio that I can't manage at the moment until I retire. Even with the allowance of being able to use account 1 to invest, I believe it will take quite some time before I reach that stage lol. Hence the current bond portfolio is just a net on my initial capital.

Thought 2: That's a good point right there. Perhaps I could use that to filter other funds, but my major concern is still fund picking lol. Not sure if I should overweight on a US focused fund or say a Global DM fund (as an example). Any advices on the funds especially for Global/DM funds mentioned above?

If I get AmDynamic and AmConservative that would mean my FI is focused on Malaysia right? Any other global bond funds to recommend? (can't afford KAF lol)

Yeah doesn't seem like it alters much haha, any comments on the 4 Global/DM Funds?

Hello Xuzen, mind if I ask how do you calculate your risk reward ratio and portfolio beta?

Finally decided with my initial portfolio and here's what I have for now-

Equities:-
- AmAsian Pacific Equity Income (20%)
- Kenanga Growth Fund (20%)
- RHB-OSK GEY Fund (20%)
- Eastsrping Investments Global Leaders My Fund (20%)

Balanced Funds:-
- Hwang Select Balanced Fund (20%)

Decided not to buy bonds for now due to the unattractive yield, I think my above is quite overweight in global sector hmm. Gotta start computing the geographical allocation soon.

Planning to top up either KGF or get eastspring investments equity Income Fund (Malaysia) but not sure yet :S Gonna start rebalancing it soon with an aim of 70:30 equity - bond ratio but gonna try to overweight more on equities for now due to the severe lack of capital lol.

Any views on the above portfolio?

Yeah thinking of adding such funds once I manage to have more capital haha.

Same, I just started working 5 months ago and my first fund was Kenanga - but then eventually I managed to get a relatively diversified portfolio with my equity exposure as below:-

Equities % portfolio
Asia Ex Japan 23.1%
US 14.0%
Europe 6.7%
Japan 4.3%
Malaysia 36.3%
Others 4.9%
Cash 8.7%
Total 97.8%