This article was first published by Asia Finance
Your money is under attack! Here’s how you can fend off threats waiting to eat away your hard-won savings and returns.
Let’s get one thing straight – all investments carry some degree of risk.
Stocks, bonds, ETFs and mutual funds can lose value, even all their value, if market conditions sour. Even conservative investments such as fixed-income or money market securities come with inflation risk.
This doesn’t mean you should sell your investment holdings the moment they enter losing territory. Or worse, not invest at all. While cash is king, cash also depreciates in value over time due to inflation. So, you won’t be doing your hard-earned savings any favour by stashing them under your pillow.
The key to successful long-term investing lies in the preservation of capital. As an investor, one way you can achieve this is to remain keenly aware of your overall portfolio allocation and the losses you are willing to undertake in an effort to build wealth.
While it is impossible to avoid risk altogether, you can protect your portfolio and defend your investment crown with these tried-and-tested strategies.
Asia Finance aims to be the premier financial portal in the region, providing a range of progressive tools to facilitate financial management while empowering those with financial interests to make better-informed decisions.
DollarsAndSense.sg aims to provide interesting, bite-sized and relevant financial articles.
Learn together with like-minded Singaporeans at the Personal Finance Discussion SG Facebook Group by discussing a range of personal finance topics.
If you have not done so, subscribe to our free e-newsletter to receive exclusive content not available anywhere else.