Syfe has a lot of portfolios and it may be quite confusing. In this video, I’ll go deeper into each of the portfolios and explain the purpose for each of them. I’ll show you their holdings, their past performances and tell you which portfolios are suitable for what kind of scenarios. Enjoy!
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0:00 – Intro
0:59 – Cash+
Cash+ is super safe because it invests in short term, low risk government bonds, corporate bonds and high quality interest rate securities. Syfe is projecting a 1.5% return, and because it’s an investment, you can still lose money in it. Based on past history, the worse you would lose is -0.73%. Whatever money that you need in the short term, and cannot lose, you can put them in Cash+.
2:05 – Reit+
Reit+ invests in Singapore REITs. The purpose of this portfolio is to receive dividend income. The average yield is about 5.8%, and the annualized performance is 12% from 2011 to 2020. If you do not want your portfolio to fluctuate too much, Syfe allows you to add in a risk management portion, which is essentially adding bonds into the portfolio. In return for a more stable portfolio, you will have lesser REITs, lesser dividends. With bonds, the average yield drops to 4.9%, annualized return drops to 8.9%.
You should invest in this portfolio if you want to receive consistent passive dividend income. If you investment horizon is 5 years or more, go for 100% REITs. If lesser than 5 years, use REITs with risk management.
4:27 – Equity100
This portfolio invests in equity ETFs. The ETFs are diversified among many different sectors like tech, consumer discretionary, consumer staples, healthcare etc. The 10 year annualized return is 14.2%. This portfolio will give the highest return over the long term because it invests in equities.
You should invest in this portfolio if you are young and have a high risk appetite. If you can invest in this over 10 years, you will be rewarded well.
5:37 – Core portfolios
If your investment horizon is lesser than 10 years, you can invest in Syfe Core. Syfe Core is similar to Equity100, but it has bonds and gold in it. It has Core Defensive, Core Balanced, Core Growth which caters to different risk appetites.
Invest in Core Defensive if your investment horizon is 2-3 years, Core Balanced 3-5 years, Core Growth 5-10 years. Otherwise, if your investment horizon is more than 10 years, just use Equity100.
7:51 – Global ARI
Global ARI has Syfe’s algorithm controlling it to prevent specified downside. If you choose 5% downside risk, most of the time you will lose at most 5% a year. Low downside risk will have more gold and bonds, while high downside risk will have more equities. ARI also auto adjust the portfolio to give better returns when times are good.
Even though Core Portfolio and Global ARI look very similar, but they cater to different investment styles. If you are doing dollar cost average, Core Portfolios are better because you will be able to buy the dip. If you are doing lump sum investing, Global ARI is better because it prevents the portfolio from dropping too much.
10:03 – Summary
For money that you cannot lose, use Cash+. To receive passive income, use REIT+. For long investment horizon, choose Equity100. Invest in Core Defensive if your investment horizon is 2-3 years, Core Balanced 3-5 years, Core Growth 5-10 years. Otherwise, if your investment horizon is more than 10 years, just use Equity100. But if you are doing lump sum investing, choose global ari, the ARI algorithm will reduce your downside risk while trying to increase your returns.
Syfe also suggests that you can use a barbell strategy, in which you have 50% in Equity100 for growth. and 50% in REIT+ for passive income. But how you want to build it is totally up to you.