Why I do not invest in Unit Trust
After I posted my hyper conservative diversified portfolio, one reader emailed me about my asset allocation. He asked me why I do not have any unit trust in my portfolio. I replied to him quite bluntly that I have a Banking and Finance degree from one of the local university, as such I do not need to pay other people to manage my money! My go to strategy when it comes to managing money is to be vested in a basket of assets - Properties, Cash, Bonds & Equities and use Low Risk Options structures to boost the total passive income to my desired level. However the Option trades are denominated in USD and therefore subject to forex risks. Thus I am always on the lookout for great SGD denominated assets that can generate decent monthly income.
Recently I came across the new United SG Dynamic Income Fund and thought it might be a good way to dip my toes into unit trust. Afterall the fund managers are aiming to pay 6% p.a. on a monthly basis. The fund is also Singapore centric and seeks to invest into 5 major asset classes:
credit: Tiger Brokers
Right Time, Right Approach
My current portfolio is equity light with less than 1% of my investable asset in stocks. I am in fact contemplating investing in REITS as interest rates start to peak and REITS is expected to slowly recover going forward. It is also interesting the fund managers are using AI to assist them to pick the right entities to add to the fund (in addition to the traditional approaches). I hope this would mean underperforming REITS will not be included in the portfolio mix as the AI would disqualify them at the very outset. All along I have not invested in any unit trust as I do not fancy the idea of paying someone else to manage my money. However after looking at how the United SG Dynamic Income Fund is being set up, I would probably shift some of my lower yielding cash into the fund. It also helps that Tiger Broker is having a small promo on the funds during its launch till 15 Nov 23 and applying for it takes just a few clicks on the Tiger Broker app.
Tiger Broker Promo
Jiamu Owl
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