Welcome Guest ( Log In | Register )

Outline · [ Standard ] · Linear+

 Diversifying portfiolio + Bonds + ETF (?)

views
     
rocketm
post Oct 21 2020, 01:33 AM

Regular
******
Senior Member
1,628 posts

Joined: May 2013
QUOTE(Ramjade @ Oct 20 2020, 11:37 PM)
You want to buy bond in Malaysia, wait until yo have RM250k. One bond will cost you RM250k.
The only way is buy via FSM MY or buy bond funds (aka unit trust of which hold bonds)
And for that you need to learn how to pick good funds. See here for some guide. Read first page and hang out in the forum.
https://forum.lowyat.net/topic/4193169

I won't even touch bonds cause I am dividend growth guy. Bond coupons are fixed and in this low environment rate bond coupon sucks. Here's why dividend grow investing beats bonds anytime any day provided you have guts to hold/buy more when price dips. Easier said then done.
Dividend growth investing will ensure that the dividend you received will continue growing at a certain % every year without fail.
If the company don't increase the dividend, out it goes.
A bond on the other hand is fixed until the call date (expiry date/maturity)

Say a bond giving 3%p.a interest in coupon vs a dividend stock giving 3%p.a  and growing at 10%p.a, if you hold both for 10 years, you get of 3% for your bond and get 7.07% for your dividends. Are there such stuff. Of course and I invest in them.

If you want to buy ETF in Malaysia you can forget about it unless you are willing to fork out USD25-40/transaction + quarterly platform fees + dividend fees + markup exchange rate by Malaysian brokerage.
You want to buy ETF open an overseas brokerage for cheap
https://forum.lowyat.net/topic/4744515
https://forum.lowyat.net/topic/3396549

Other alternative
Stashaway

You can forget about PIDM when it comes to investing. When it comes to investing, there aren't no PIDM to protect your capital. That's why it's call investing. Your capital is a risk.
*
Hi Ramjade,

compare buying Malaysia ETF in bursa and overseas ETF, the norm for Malaysia ETF is that the spread is too wide means expensive compare to overseas. If taking into account for exchange rate to buy overseas ETF, will overseas ETF still cheaper?

The ETF that I am interested now is Tradeplus New China
rocketm
post Oct 21 2020, 10:15 AM

Regular
******
Senior Member
1,628 posts

Joined: May 2013
QUOTE(Cubalagi @ Oct 21 2020, 10:50 AM)
Bonds are not just govt bonds. There are also corporate bonds. Corp bonds are basically divided into 2: investment grade and non investment grade (or high yield or junk). These fetch higher yields than govt bonds.

There are also bond etfs, being etf investing into bonds. For eg TLT is an ETF that invests in long dated US govt bonds.

I own bonds, singly and via etfs.

Problem with bonds now is the historical low yields.
*
I though during bad economy corporate bond will be higher coupon rate.

 

Change to:
| Lo-Fi Version
0.0192sec    1.62    6 queries    GZIP Disabled
Time is now: 19th December 2025 - 01:01 PM