As shown in the previous post, I’ll be starting another portfolio for a number of funds that’s more aggressive than my usual and regular investment risk tolerance. This is the first of N in the series, about my plan and my research towards getting the fund into this portfolio. Even though this is an aggressive approach, I don’t want to be reckless and simply buying whatever hot and in trend. And thus, most of the selection criteria will be the same, except for smaller “margin of safety” so to speak.
On overall, I would continue to follow the 70/30 spread of equity and bond(fixed income). However, I’m going to try a little bit different, by having 30% of overall from a selection of Balanced funds. This main due to I couldn’t find income funds that fit my criteria. ETF would be a good choice, but my current one and only investment account only has funds in it. A big limitation, and would need to change it as soon as I get the chance.
To start off, this is a list of funds that I’m considering:
- OSK-UOB KidSave Trust (OSKKIDS:MY),
- OSK-UOB Smart Balanced Fund (OSKSBAL:MY), and
- Hwang Select Balanced Fund (HWABALA:MY).
From this 3, I will go in depth and analyze which is the best for me that fits my criteria of cheap (overall fundamentals), growth opportunity (companies in portfolio) and dividend + historical. I’ll be showing my final selection on which to purchase in, based on analysis from Fundsupermart (annual reports, prospectus and information such as dividend..etc) and Morningstar Malaysia (X-Ray, P/E and other fundamentals).
In plain sight, HWABALA is the worst performing of them in short term (the doesn’t mean i want fast money, just a comparison of portfolio selection of the fund manager), and OSKSBAL is the worst performing in long term (both other funds achieve 2 digit growth, but not this). With this said, OSKKIDS will most likely added into this portfolio if there’s no bad fundamentals. In OSKKIDS, the top 5 holdings contain 2 Indonesia stocks, 1 Singaporean REIT and 2 Malaysian stocks (TNB and MBB). Both TNB and MBB is having low PE which is favorable, and both has the biggest market share of the products/services they provide. Same goes to the Singaporean REIT (Suntec REIT). I think this is a go for me, and to start off, this would be ~30% of my total portfolio. It’s higher because this fund overall employs a 40-60 ratio of equities and bond, thus from the 30%, the maximum exposure to fixed income is about 12%-18% overall.
I will go through the other 2 in the next series. 🙂