1 / 4

Investment strategy for 2021 that is best for bond and stock funds

https://landmark.financial/<br>Our advisers will help you with decisions on investing in International shares, IPOs, corporate actions and other asset classes. Your investments are monitored and reviewed regularly and we proactively recommend adjustments if and when necessary.

landmark1
Download Presentation

Investment strategy for 2021 that is best for bond and stock funds

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Landmark Financial Korea Review Landmark Financial Korea Email: info@landmark.financial Address: Kyobo Building 17th Floor, 1 Jongno, Jongno-gu, Seoul 03154, Korea Investment strategy for Investment strategy for 2021 that is best for bond 2021 that is best for bond and stock funds and stock funds Phone: +82 234784250 For both bond funds and stock funds, the ideal investing plan For both bond funds and stock funds, the ideal investing plan for 2020 will be different from the norm. Due to its long for 2020 will be different from the norm. Due to its long history of being their greatest investment in term history of being their greatest investment in terms of s of performance, many investors have developed a deep affection performance, many investors have developed a deep affection for their bond fund. It's time to think beyond 2021 when for their bond fund. It's time to think beyond 2021 when creating your ideal investment portfolio to balance risk vs. creating your ideal investment portfolio to balance risk vs. return and reduce the likelihood of future big losses. return and reduce the likelihood of future big losses. In the realm of i In the realm of investing, hindsight is useless, and even the nvesting, hindsight is useless, and even the finest stock or bond funds will lose money if the market finest stock or bond funds will lose money if the market conditions turn against one or the other asset class. You need conditions turn against one or the other asset class. You need balance as an investor, which for the typical investor means balance as an investor, which for the typical investor means having both types of mutual fu having both types of mutual funds in your investing portfolio. nds in your investing portfolio. The fact that interest rates have been declining for 30 years The fact that interest rates have been declining for 30 years and have only lately reached EXTREME all and have only lately reached EXTREME all- -time lows means time lows means

  2. that you now also need to reconsider your investing plan in that you now also need to reconsider your investing plan in both circumstances. both circumstances. The greatest investing The greatest investing approach currently is to start approach currently is to start minimizing minimizing your exposure to risk in this asset class, even if your exposure to risk in this asset class, even if bond funds have outperformed safe assets and even stock bond funds have outperformed safe assets and even stock funds in the past. The explanation is that these funds perform funds in the past. The explanation is that these funds perform best when interest rates are down and suffer best when interest rates are down and suffer when they are when they are rising. This problem known as "interest rate risk" can affect rising. This problem known as "interest rate risk" can affect even the highest quality or best bond funds. Interest rate risk is even the highest quality or best bond funds. Interest rate risk is what defines long what defines long- -term bond funds term bond funds landmark financial korea landmark financial korea. . What is the ideal investment plan for 2020 and beyond to What is the ideal investment plan for 2020 and beyond to generate income and generate income and growth, and what are the greatest funds growth, and what are the greatest funds to hold? To boost your safety factor, look for intermediate to hold? To boost your safety factor, look for intermediate- - term bond funds with investment portfolios where the average term bond funds with investment portfolios where the average maturity is 5 to 7 years rather than 10 to 20 years or more. maturity is 5 to 7 years rather than 10 to 20 years or more. Although you will give up some di Although you will give up some dividend income, your vidend income, your interest rate risk will be significantly reduced. Then, seek for interest rate risk will be significantly reduced. Then, seek for the greatest stock fund investment that would replace the the greatest stock fund investment that would replace the dividend income you have forfeited while reducing the risk of dividend income you have forfeited while reducing the risk of holding a stock fund. holding a stock fund. You must realise that your b You must realise that your bond fund has most certainly been ond fund has most certainly been your finest investment lately not because it has given you such your finest investment lately not because it has given you such huge dividends, but rather because its value has been rising as huge dividends, but rather because its value has been rising as a result of the economy's declining interest rates. There are a result of the economy's declining interest rates. There are already equity funds available th already equity funds available that offer bigger dividends at offer bigger dividends

  3. without taking on interest rate risk. Given that some of the without taking on interest rate risk. Given that some of the greatest stock funds generate dividends that are greater than greatest stock funds generate dividends that are greater than the average for bond funds, your best investing plan would be the average for bond funds, your best investing plan would be to focus on these funds. to focus on these funds. Lowering your expos Lowering your exposure to bonds and funds that invest in ure to bonds and funds that invest in them, as well as reducing your risk in equities (growth funds) them, as well as reducing your risk in equities (growth funds) that pay little to no dividends, will be the greatest investing that pay little to no dividends, will be the greatest investing plan for 2020. In order to boost your net return, it is usually a plan for 2020. In order to boost your net return, it is usually a good idea to reduce the c good idea to reduce the cost of your mutual fund investments ost of your mutual fund investments of both kinds. To put our investing approach into practise, let's of both kinds. To put our investing approach into practise, let's get more precise about the best bond funds and best stock get more precise about the best bond funds and best stock funds to invest in. funds to invest in. The ideal bond fund investment approach is to choose The ideal bond fund investment approach is to choose intermediate intermediate- -term inde term index funds with minimal annual fees and x funds with minimal annual fees and NO sales charges. This can help you save costs by 1% annually NO sales charges. This can help you save costs by 1% annually and by 3% or more up front. This is crucial because most safe and by 3% or more up front. This is crucial because most safe investments only yield 1% annually, and most bond funds investments only yield 1% annually, and most bond funds won't be paying dividends of even 3% in won't be paying dividends of even 3% in 2020. Additionally, 2020. Additionally, longer longer- -term investments include a large downside risk known term investments include a large downside risk known as interest rate risk. as interest rate risk. The ideal stock fund investing plan: Select stock INDEX funds The ideal stock fund investing plan: Select stock INDEX funds that own shares of big corporations with above that own shares of big corporations with above- -average average dividend yields. For dividend yiel dividend yields. For dividend yields that are even greater, ds that are even greater, think about real estate equity funds as well. You might earn an think about real estate equity funds as well. You might earn an average of 3% or more in dividends if you include both in average of 3% or more in dividends if you include both in

  4. your investing portfolio and use no your investing portfolio and use no- -load funds to avoid sales load funds to avoid sales costs and reduce your yearly expenditures. Add costs and reduce your yearly expenditures. Additionally, itionally, compared to growth funds that don't generate high dividends, compared to growth funds that don't generate high dividends, these products offer lower downside risk. these products offer lower downside risk. Your optimal investment plan for 2020 will give you a Your optimal investment plan for 2020 will give you a comparatively good dividend income while reducing your comparatively good dividend income while reducing your investment risk in bond and equi investment risk in bond and equity funds ty funds landmark financial landmark financial korea review korea review. .

More Related