Diversification aims to maximise returns by investing in different asset classes and instruments that would react differently to the same event.
“The notion of not putting all your eggs in one basket is key in times of volatility. In the coming year, more partnerships will be expected in the pursuit of effective long-term performance for customers. This will also provide a more robust risk management framework and an international network of investment resources. The first step involves adopting an open-architecture business model that gives clients access to the best products. In light of this, RHB is aiming to widen its product range to better cater for the specific needs of customers. They also have access to extensive research reports, company executives, competitor information and other important data that is necessary to make wise investments within their mutual fund.īy engaging with the right fund manager, you can rest assured that your money will work hard for you while you focus on other life priorities.ĭiversification of an investment portfolio is one of the chief means of reducing risk and volatility.
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They possess advanced skills through specialised education, experience and professional designations. In theory and generally in practice, fund managers have expertise beyond that of the general public. With unit trusts, investors can invest through the skills and experience of professional fund managers. In order to profit from investing in individual securities, an investor not only needs resources and time, but a considerable amount of expertise. Many investors might not have the resources or the time to purchase individual securities such as stocks and bonds. Here are five essential ways to take control of your finances this year
This can provide a cushion as your bets are better spread out. U: A well-balanced diversification strategy will help an investor to maximise returns in the face of heightened volatility that can cause unpredictable outcomes. What is a key strategy in investments this year? Why is diversification of the investment portfolio crucial in times of volatility? This optimism is based on recent strength seen in the global oil market, improving crude palm oil prices and general feedback on consumer sentiments on the ground. U: There are early signs that 2017 will likely end on a more positive note than 2016 for the Malaysian economy. What are your predictions for the Malaysian economy? Can we expect a stronger positive growth in 2017? This could potentially put immense strain on the country’s profits and earnings.Īgainst this backdrop of the external environment, examining the balance between upside and downside risks to Malaysia’s economic growth outlook remains crucial. In the event US corporations are forced to bring back jobs to the US, labour costs will increase significantly from, say, a US$5 wage in a developing country to a fivefold cost in the US. Secondly, tensions from the American political arena with pro-growth policies and anti-trade sentiment may yield unintended consequences for the Malaysian market.
This year, we expect that three major political events - general elections in France and The Netherlands as well as Germany’s parliamentary elections - could markedly affect global market dynamics. The inter-relational nature of the global economy means that Malaysia will be clouded by uncertainties resulting from various political phenomena, such as the UK’s vote last year to leave the European Union. Understanding Malaysia in the midst of the global economy However, retail investors would be well advised to seek out experienced fund managers, like RHB Asset Management, to advise them on those opportunities so an informed investment decision can be made,” he says. “At every stage of the economic cycle, there will be business sectors and economies that perform better or are more resilient than others. “Investment opportunities remain prevalent, even in times of volatility,” says U Chen Hock, head of group retail banking at RHB Bank Bhd. It notes that most of the risks facing the economy stem from external global factors. However, equipping yourself with sound analysis and a team of experts to take charge of your finances will propel you forward, allowing you to take advantage of new investment opportunities.Īccording to new economic analysis by the World Bank, Malaysia’s gross domestic product growth is projected to rise from 4.2% last year to 4.3% in 2017. Stock market volatility, the rebalancing of China’s economy, further declines in oil prices, signs of rising inflation and new political uncertainties around the world will take Malaysia along on a rough ride. And while the economy remains uncertain to many, it is predicted to remain resilient against various headwinds in the year to come. We are at the start of a new quarter, filled with new resolutions and hopes.
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