My Portfolio Allocation 26 April 2013

Here is my portfolio allocation:

• Cash...................36%
• Stocks................44%
• Bonds.................9%
• Gold...................3%
• Unit Trust............7%

In the past year, I have drastically reduced the amount of stock i hold for 2 reasons, one which many would find stupid, was fear. Fear that the market would collapse for reasons such as the European crisis. I have to admit that this fear was borne out of watching too much news and reading too much into analysts reports. Instead of trusting my judgement and holding on to the good companies that i have bought, i sold them. That said, i have to admit that i slept better at night after selling.

The other reason, was because i was going to buy a house and start a family and therefore preferred not to carry too much risk. I currently hold many individual stocks consisting of blue chips, reits and low cap stocks which I will discuss further in another post.

I am currently trying to move my investments towards one that is more heavy on index funds and less of individual stocks ( Influenced by the books The coffeehouse Investor by Bill Schultheis and The Millionaire Teacher by Andrew Hallam - Will do a review on these books soon). I would still have to carry some individual stocks as i would like to keep my annual yield at a minimum of 5%.

The gold segment of my portfolio was only added recently when the price of gold dropped to a price i was comfortable with. I do not really believe in gold and therefore would only hold a small amount of it. However, if the price should drop a lot more, i would consider buying physical gold.( Not as an investment but more of a personal vanity thing.)

As for unit trust, the only reason why i got it is because i want to be consistently investing in something every month(sounds stupid i know) and DBS does provide no sales charge on the regular savings plan for up to $500. I do not put a lot into unit trusts due to the high annual maintenance and management fees which i know will slowly but surely eat into my returns in the long run.

As for the cash portion of my portfolio, i am currently waiting for a market correction so that i can invest it. I have already set aside money for my house and therefore the whole sum of cash is investable. 

Well, that's it for my portfolio allocation! What's yours like? Please do share so that we can learn more from each other.

As always, Save more, Spend Less and Invest wisely
P.