tag:blogger.com,1999:blog-6213354074634538714.post339118923443440296..comments2023-08-03T23:30:19.645+08:00Comments on (The) Boring Investor: The Passive PortfolioLee Chin Waihttp://www.blogger.com/profile/10250390011842795509noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-6213354074634538714.post-57185056593743513102015-07-22T23:18:25.289+08:002015-07-22T23:18:25.289+08:00You're right to say that bond funds will be af...You're right to say that bond funds will be affected when interest rates rise. The underperformance of the passive & spicy portfolios is due to the bond funds. A short duration bond fund will be able to weather the interest rate rises better. Nevertheless, my analysis at <a href="http://www.boringinvestor.blogspot.sg/2014/02/volatility-is-your-friend.html" rel="nofollow">Volatility is Your Friend</a> shows that volatility is advantageous to a portfolio that will be rebalanced, so I'm not too concerned.<br /><br />I have another bond fund, Nikko AM Shenton Short Term Bond Fund, in my SRS investments. That has held up quite well compared to the 2 bond funds above.<br /><br />The main issue about fund size is mainly the expense fees. If a fund is too small, the expense fees can be higher.<br /><br />I'm still funding the spicy portfolio on a monthly basis, which will only be completed by end of the year. Todate, it is up slightly by about 1%.<br /><br />I started off with FSM, but the platform fee was too much to bear for a relatively inactive portfolio, so I switched over the DollarDex. It has a lot of legal fine print that I got tired of reading, but other than that, it is OK as an investment platform. For carrying out research on which unit trusts to buy, I find it more convenient to do so at FSM.<br /><br />Thks. Hope you will visit often :)Lee Chin Waihttps://www.blogger.com/profile/10250390011842795509noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-80001465225363482272015-07-22T20:53:21.063+08:002015-07-22T20:53:21.063+08:00I'm just wondering how would a bond fund perfo...I'm just wondering how would a bond fund perform in a rising interest rate environment? The duration of the Schroders ISF Global Corp fund is about 6 years, and Fullerton Asian Bond Fund is about 4 years. I believe prices of these bond funds would be very negatively impacted once rates start to rise. Would it be better to select a Short-Duration bond fund instead? <br /><br />You mention that you take into consideration the fund size when selecting a fund, any reason why? <br /><br />How's your spicy passive portfolio coming along? I'm thinking of going with the LionGlobal US 500 fund, just haven't decide on which bond fund to select. And I agree with you that the US market is really resilient.<br /><br />How's your experience investing through DollarDex thus far? Any points to take note? FSM platform is more user-friendly, but I believe their annual platform fee will impact returns more than a initial sales charge.<br /><br />Your blog is really informative, really appreciate your effort! :)Zi Ronghttps://www.blogger.com/profile/17274510743853711340noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-66856438628245782952015-07-20T23:15:36.239+08:002015-07-20T23:15:36.239+08:00Hi, I wrote about the performance of this portfoli...Hi, I wrote about the performance of this portfolio in Mar; you can read about it at <a href="http://www.boringinvestor.blogspot.sg/2015/03/possible-worst-time-to-invest-year-on.html" rel="nofollow">Possibly The Worst Time to Invest – A Year On</a>. From Mar till now, the performance is down slightly by 1%.<br /><br />Generally, if you are able to stick to a commitment to invest for the long term using Dollar Cost Averaging (DCA), you should be able to do fine :) I have another blog post that discusses a portfolio invested using DCA after 7 years. You can refer to it at <a href="http://boringinvestor.blogspot.sg/2014/10/review-of-my-srs-investments_12.html" rel="nofollow">Review of My SRS Investments</a>. It should provide you with some reference for a long-term investment.Lee Chin Waihttps://www.blogger.com/profile/10250390011842795509noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-52442180066183367972015-07-20T15:11:13.525+08:002015-07-20T15:11:13.525+08:00Hi, may I know what's the performance of the p...Hi, may I know what's the performance of the passive portfolio thus far? I am considering starting a regular savings plan using the similar portfolio too, with a 7-10 year timeframe. Will it be suitable?Zi Ronghttps://www.blogger.com/profile/17274510743853711340noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-43140111388954351402014-11-20T00:08:12.170+08:002014-11-20T00:08:12.170+08:00Hi Lewis,
It's available at http://www.boring...Hi Lewis,<br /><br />It's available at http://www.boringinvestor.blogspot.sg/2014/02/portfolio-rebalancing-fine-balancing-act.html. I back-tested the optimal rebalancing margin for portfolios with different stock / bond allocation. The optimal margin is around 9% for most of the portfolios, but I opted to set it slightly lower for my passive portfolio.Lee Chin Waihttps://www.blogger.com/profile/10250390011842795509noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-2976194593223867972014-11-19T17:44:27.916+08:002014-11-19T17:44:27.916+08:00Hi, do you have the link to the research that use ...Hi, do you have the link to the research that use 8% as benchmark for rebalance? I always read about rebalance at fixed interval says yearly, half year or quarterly. LK888https://www.blogger.com/profile/01499450007024966746noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-47197014957680664232014-02-16T14:57:27.756+08:002014-02-16T14:57:27.756+08:00Hi Kyith,
Thanks for sharing. A rolling long matu...Hi Kyith,<br /><br />Thanks for sharing. A rolling long maturity bond fund/ ETF will suit my objectives better as the volatility is maintained over time. I didn't consider the Vanguard All World ETF as I try to have both the stock and bond components on the same platform to reduce the efforts for rebalancing.Lee Chin Waihttps://www.blogger.com/profile/10250390011842795509noreply@blogger.comtag:blogger.com,1999:blog-6213354074634538714.post-25898485721828982832014-02-16T10:07:13.779+08:002014-02-16T10:07:13.779+08:00Hi Chin Wai, thanks for sharing.Would a target mat...Hi Chin Wai, thanks for sharing.Would a target maturity date bond ETF meet your profile? Have you consider the Vanguard All World ETF in UK for the stocks portion?Kyithhttps://www.blogger.com/profile/07617228143744544821noreply@blogger.com