Thursday, May 22, 2014

[XMM STI ETF Investing] Broke Even Already!

I started this simple portfolio for my sister on the 1st of April 2014. Just using a current bank account, a bond fund and the STI ETF, I plan to help my sister get decent returns while taking a very slow and steady, risk adverse approach using sound investment principles.

After I received her money, I bought into the UOB SGD Fund Class A immediately and a few days later I got the confirmation of the price that I entered in at.

Just FYI, I purchased 4731.82 units @ $1.678

As of yesterday's closing price, the unit price was $1.691!

4731.82 x $1.691 = $8,001.51

So, in less than 2 months (about 7 weeks), I managed to breakeven on the sales charged tagged onto the bond fund. That means 0.75% gains in just 7 weeks!

Annualized gains at this rate would be a whopping 5.57%! However, much of the year has already passed, so I'm aiming for this bond portion of the portfolio to make a conservative 2% over cost by the end of the year. (upside looks capped at 3%)

STI valuations still do not look attractive to me by a long shot. I doubt I will be entering in any position in it until at least the last quarter of the year.

Portfolio Recap

Cost and Location:
$8,000 in UOB fund
$2,002.70 in OCBC 360

Current Portfolio Value:
$8,001.51 in UOB fund
$2,002.70 in OCBC 360

Total Current Market Value = $10,004.21
Unrealized gain = $4.21

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