IFAST runs this portfolio IFAST DPMS whereby you or any investor in it gives discretion to the asset manager (IFAST) to manage the portfolio on your behalf fully.
DPMS stands for Discretionary Portfolio Management Solutions.
The investment service helps you invest for the long term by
1) Choosing the opportunities in the market to invest more (If china equities are cheap, the portfolio has more of it)
2) Choosing the best performing fund (wouldn’t it be make sense to choose better performing funds)
3) Keeping portfolio according to your risk profile (this is done by re-balancing)
How to find the portfolio that suits you
There are 5 portfolios that you can choose from to suit your risk profile and objective. They are
– Income (Conservative)
– Income Growth (Mod Conservative)
– Capital Accumulator (Mod Aggressive)
– Capital Growth (Aggressive)
15-30 funds are chosen to form the portfolio.
The funds chosen can be made up of unit trust, ETFs or index funds.
Below is Aug2019 allocations. If you compare it to previous month’s allocations, you’d realise that new funds with better performance are also added in to replace underperforming one.
The comparison work will be done on an ongoing basis and this is done by IFAST in-house research team.
A balanced portfolio is around 50% equities to 50% bonds.
With this portfolio, you are invested globally.
Based on historical data of other balanced funds, a drop during a market crisis can be reasonably expected at 35%-40% in a worst case scenario. This is a key question when you think through your risk appetite.
With a $100,000 portfolio, a $40,000 paper loss, is it going to be uncomfortable with you?
If it is not, then a balanced portfolio or a more aggressive one can suit you.
You may read on balanced funds like FIRST STATE BRIDGE over here.
Capital accumulator and capital growth have more allocations to equity. Hence, they will have higher volatility but can potentially deliver higher long term returns.
Performance table of the 5 IFAST DPMS portfolios
Below is the performance summary table since Dec2016.
The more aggressive the portfolio, the higher the volatility as shown below.
Capital growth (in red) has the highest equity allocations gave the highest return and likely the most volatile.
Balanced portfolio since inception is 5.5%p.a while Capital Accumulator portfolio since inception is 6.9%p.a.
To find out more, please click on the link provided : https://www.theastuteparent.com/2019/09/ifast-dpms/
You may also visit our website at https://www.theastuteparent.com/
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