Allocation reasons
The goal is to seek for mid to long term investment opportunities with a moderate-aggressive risk appetite.
30% allocation in SPY S&P 500 ETF acts as the anchor for diversification because of the nature of the ETF which invests in the large caps in S&P 500, providing steady growth as proven from the past 30 year historical annual returns.
25% on MAYBANK serves as a fixed passive income with a relatively steady y-o-y growth. The company is in Malaysia's financial sector, the sector with the largest market cap in KLCI, it also has limited amount of competition due to strict laws and regulations of the Malaysian banking sector, and the company is backed by the government. This stock plays a role in seeking income from dividend paid rather than capital gain.
15% on YTL is placed because of the constant increasing demand for properties and infrastructures on countries it is operating in, which are mostly developing countries. The energy sector of YTL is an indisposalable part of the company as electricity is a necessity for everyone. Recent macroenvironment changes have also given rise to the demand for energy.
10% allocation on Grab acts as another attempt to diversify the portfolio by exposing it to foreign markets. Other than that, Grab's future prospects are promising, with it being a major innovative e-hailing service provider in SEA regions, and the recent attempt of developing a superapp with financial inclusion, and digital banking Gxbank may allow grab to grow exponentially when the projects are successfully implemented and used by consumers.
10% on HARTA is placed with a shorter investment period in mind. HARTA has shown that they are more efficient in utilising their assets as compared to their competitors, and recent reports have shown that the sector has almost recovered from the post-pandemic check. This is shown as demands for their products are starting to increase due to the gradual depletion of products hauled at the time of the pandemic. It gives an idea that the company will perform greater in the near future.
5% on PLINTAS, a business trust including 4 major tolls in malaysia lowers the risk of the portfolio as volatility of the stock is low. It is due to the nature that there are large amounts of car flows in malaysia, providing tolls a relatively stable source of income. This stock aims to further lower risk of the portfolio to align with my risk appetite. The stock is unlikely to grow, but it is promised to pay stable dividends as stipulated from the prospectus of the business trust given for the registration for its listing.
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自己念 : don't leave me, bring me fly
mjbond : most of them are stable stocks. however, how about reits ? I think can allocate some for these segment as well. financially free is achievable for those who can save more than they spend
Hin093 OP mjbond : As I'm still pretty new, I tend to get scared when things are in the red, that's why the portfolio consists of many stable stocks with lower fluctuations.
I do intend to set for a higher risk portfolio after I've gained some experience, better understanding, and done more research on the market.
As for REITs, from what I've seen, at least for the Malaysian market, they're traded at low volumes, which I'm concerned about their liquidity (even though I'm taking a longer term investment approach), research are yet to be done on the REITs market too. It is a concern to make that they might be easily manipulated because of the low trading volumes. But nonetheless, it is an interesting topic you brought up, and I'll be sure to look into it.