QUOTE(cyanbleu @ Jun 28 2020, 04:58 PM)
I'd like to think no investments are risk free.. with the exception of FD. They mentioned volatility, but with no clear elaboration.
According to the introductory post, I understand the higher the risk profile, the higher the projected returns. And you were right, these 'expected returns' are definitely higher than FD rates (even ASB for that matter).
However, in the unfortunate event that the markets go downhill, what kinds of losses am I looking at if I set my risk profile to be, say, 20%? The website says if your profile is set at 20% there's a 1% chance you have 20% losses, which sounds pretty alarming.. Let me know if I misunderstood incorrectly..
sorry to butt in..
1% probability to lose 20%, say your investment of $10K
Theoretical loss = 1% *20% *$10K = $20 losses for $10K
Say we 10x (U know the marketing spiel from that guy) that, that's $200 losses a year .. for a $10K, effectively a 2% loss of capital even when 10x wor..
thus, IMHO - if one can't zzz based on -2%pa even after 10x the theoretical losses, not worth the "thrill" of investing and better stick to EPF because even FD can kaput due to:
a. PIDM insures only up to $250K per person per bank (not per account)
b. Inflation rate vs FD rate
of course some may also say EPF can kaput.. i think by that time, food, shelter & weapons will be on top of our minds, not $
OR
just diversify lor if too much (ie. 90%+ investments are in EPF only) - if can zzz with ups/downs of bonds & equity markets