Open an investment portfolio strategy The new style of financial planners
Date 30 May 2022 time 07:16
Open the investment portfolio strategy “Rattaphon Wachiramekakul” and “Bow Jinnarak” Jet Rangsan, the style of a new generation of financial planners Dealing with inflation – interest rates are rising – Covid-19 is still spreading
Investment and Money Management 2022 is full of new challenges. caused by rapid and extremely violent changes Until there are often questions regarding how to invest and manage money. In a situation where COVID-19 continues to spread and lasts for more than 2 years and the virus continues to mutate, causing the Thai economy and the world to slow down, while the US is facing rising inflation problems. The latest record high in 40 years, the US consumer price index, or CPI for January, hit 7.5 percent. The Federal Reserve (Fed) announced it will raise interest rates faster and harder to curb inflation. by the market that The first interest rate will begin at the March meeting. and will go up 4-5 times in a row! which is important to follow is To what level will the final interest rate rise from 0.50% level up?
for Thailand It is believed that interest rates will not rise. because the economy has not fully recovered Inflation remains within the target range of 1-3%, but rising oil prices Energy analysts expect crude oil prices to hit $100 a barrel this year. Including the price of consumer goods is rising. which will ultimately result in a weakening of the purchasing power of the people. From the risk factors that occur both inside and outside the country, what kind of “Investment Portfolio Arrangement” is safe? and still generate positive returns And win inflation soaring to hear the views of financial allocation and investment from Ms. Chin-Ratthaphon Wachiramakakul, financial planner, CFP® Senior Financial Consultant and Ms. Bow-Jinnarak Jet Rangsan Financial Planner, CFP® Senior Financial Consultant, co-founder of Money Adwise (Wealth Management), a comprehensive financial and investment advisory firm, offers a one-stop holistic planning service that covers clients across all life stages. Is there a strategy for organizing portfolios for customers during this period?
Mr. Rattaphol Wachiramakakul, Financial Planner, CFP® Senior Financial Consultant and Chief Executive Officer of Money Adwise revealed that investment portfolio management under the circumstances affected by Covid-19 Crisis Inflation and US interest rates are rising. I still think that having an investment plan Overall, it is an important issue and the heart that will determine the investment to reach the goals set. At the same time, there must be good risk management along with the expected return. including a backup plan in the event that the financial and investment plans do not go as planned because I have to admit that the current changes are happening very fast and strong Portfolio management must be flexible. and always adjust to keep up with the situation In addition, look at The key factor for successful investment is proper asset allocation and long enough investment period. A study by Vanguard Group inc, a world-class asset management firm, found that asset allocation can result in a successful investment of up to 91.1%, while asset selection and timing for investments are at the right time. will result in investment success of regarding 8.9%. “JPMorgan” found that if investors can stay in the investment for 10 years, almost the opportunity of loss is closed.
Mr. Rattaphol added that the asset allocation of the company I will simulate portfolios at different risk levels and with the right investment ratio. and has an expected return range Each portfolio will have a level of risk that the customer can take as a goal to determine what kind of “Asset allocation” there is, for example, if the customer takes a relatively low level of risk. Investment portfolios can generate an average return of 4.50% per year, consisting of: 1. Medium-term bonds 30% 2. Global Bond Discretionary 30% 3. Equity and alternative investments 40%
In the case that customers can take moderate risks Investment portfolios can generate an average annual return of approximately 6%, consisting of: 1. Medium-term debt instruments 20% 2. Global Bond Discretionary 20% 3. Equity and alternative investments 60% for clients who can take risks. get a high level Investment portfolios can generate an average annual return of approximately 8%, consisting of: 1. 10% alternative investment 2. 90% equity
All three portfolios must be well diversified in regional, business sector or mega trends, and during this period when many assets, markets are collapsing, it is a great opportunity to Invest with a discount
However, this type of portfolio arrangement will allow the client’s portfolio to receive the expected returns that investors want. and at the acceptable risk level Inflation is a key financial enemy that reduces purchasing power. The acceleration of inflation For example, if inflation is at 3%, savings or pensions will be impaired by regarding 25%, or 100 baht will be worth around 75 baht within 10 years.
For investing in equity securities in the time of the COVID-19 crisis I think investing in growth stocks like the technology sector is attractive. Because it is a business that has a tendency to grow and can adapt quickly to various crises, but this year the Fed and ECB are regarding to raise interest rates. The policy will have some impact on the valuation of these stocks in the short term. But in the long term, it’s still interesting.
Investing in defensive stocks that are growing in themselves, such as the healthcare sector, that over the long term regardless of external circumstances Sick people still have to use hospital and medical services. In addition, they have to diversify their investments into foreign stocks. because the Thai capital market and bond market Compared to the world market we are very small or we are just an open small market when there are volatility in the world such as inflation we will hit it immediately. Diversification of investment abroad will support the portfolio to get good returns. which looks that the distribution to invest in global equity, Chinese and Vietnamese stock markets is interesting
However, leaving Investing in foreign countries nowadays is easy. And there is no need to have a lot of money to be able to invest in good mutual funds, which many of our mutual funds have a policy to invest abroad. and in many assets Therefore, it is a good investment diversification opportunity. This allows us to easily invest in business that is a world-class brand, which nowadays Thai people are more interested in foreign investment. After the Covid-19 era Economic recovery and investment following the COVID-19 era Obviously Investors with foreign investments Ports can quickly recover from losses and return to profits. As for people who rarely invest abroad, seeing this way, they began to change the concept of allocation of investment abroad more.
Mr. Rattaphol admitted that during the Covid-19 crisis The portfolios of the clients it manages are also affected. During the period of heavy volatility in the stock market from March 2020, the index fell more than 600 points, yielding negative 22.97% for clients, which the company advised clients to adjust their portfolios. In the end, the return turned positive at 13.03%, while the total return of SET TRI was negative 5.24%, while the Private Wealth portfolio yielded 9% as planned.
“I see financial planning and investing like a marathon. It doesn’t take time to measure success in a short period of time, but what we’ve seen clearly in our customer care over the years is: Clients have had financial habits and discipline and have changed for the better. Many people have never invested at all, gaining more knowledge and understanding. commitment to investment and continually study the knowledge of financial products There will be fewer mistakes in financial decisions,” said Rattaphol, important to investment. (There is good news) of the asset or market and will exit when the bottom is most (bad news) for most investors. There are more losses than gains on investments. and cause investment fear and unable to accumulate assets from investments to grow in the long run because they are only in & out of investments according to the current I don’t want to see investors invest like this, but there must be a holistic investment plan. To be able to generate good returns and make life stable.
On the side of Khun Bow-Jinnarak Jet Rangsan Financial Planner CFP® Senior Financial Consultant gives perspective on young people interested in investing in digital assets. that in terms of treasury and investment Cryptocurrency is a new asset class that doesn’t have a long history to study compared to other asset classes, although it’s interesting. and is an investment opportunity Investors should do a lot of research, don’t just trust acquaintances, invest and invest. Going through the whitepaper and understanding the tokenomics of a given coin is a good starting point for investing. However, in investing, asset allocation is an important part of investment planning. Investment assets should be allocated to suit the goals, timing, and risk appetite and appropriate for that goal. Even though the new generation is young But for the money that needs to be spent in a short period of time and can’t take high risks Should not invest in crypto due to its high volatility. For long-term investment plans that accept high risks This does not mean investing in crypto 100% of the available assets. And each type of financial instrument has different strengths and weaknesses. should be chosen accordingly and spread the risk well “As seen in the news during the crypto price drop Some people don’t have money to pay off a house or car, have to borrow or be a burden on others. Therefore, it must be emphasized that Financial plans are not just regarding investing. income and expenditure management Prepare emergency liquidity debt management Manage life and health risks, retirement and tax matters. It is important to be related,” said Mr. Jinnarak.
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