Part 3 of Nikko AM advertistment on Today newspaper – ABF Singapore Bond Index Fund (A35).
Do take the article with a pinch of salt. Sure, it stated factually how well it did in “difficult market conditions”. I guessed they have forgotten to state how well it did in comparison during good market conditions?
Also, consider the possibility that during difficult market conditions, we instead BUY into equities at depressed prices, how much would we have gained when the market rebounded?
Time is our best friend.
Personally, I’m not recommending that you buy, or do not buy in it. It is merely a matter of choice. With a small capital, I do not touch ABF ETF at all since 1 lot (1,000 shares) costs $1160 at current prices. I prefer to keep cash instead for the “bond” portion of my portfolio.
At the moment, I’m roughly keeping my portfolio at a 70% (STI ETF) vs 30% (Cash) ratio, which I intend to re-balance annually.
More Than Index Investing
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