Sunday, 2 September 2007

Model unit trust portfolio

I do unit trust investment with CPF money. Since CPF is meant for retirement and we cannot take it out until x years later, it is good to generate better return with it. I usually buy once or twice a year, when I have money and when the market is down for some reason. I think it is good to set up a model portfolio to test my unit trust skill.

Assume start up capital of 5k. Frankly speaking, I am aggresive investor, not everyone is suitable with the following allocation. The buy price is base on 31 Aug market price and sales charge of 2%.

Aberdeen Pacific Equity - 499.89 x 3.9209 = 2000
Aberdeen Thailand Equity - 208.78 x 4.694 = 1000
Prudential Pan European - 692.58 x 1.415 = 1000
Lion Capital Japan Growth - 1140.86 x 0.859 = 1000

I would add more money to this theoritical portfolio when there is market crash or correction. I would also sell some holdings if the market become overvalued. Let's see after few years whether this portfolio can achive above 15% return per year.

0 comments: