In response to some of my friends' request to build a simple portfolio with small sum of initial investment, followed by a regular saving plan. This is what I have for you ... A real portfolio consists of 4 counters in property, utility and shipping trusts. I call this High Yield Portfolio
Objective of Portfolio: Aim to achieve an average net return of 8.8% per annum in the form of dividends and capital appreciation. Initial capital $5,000 with monthly saving of $200 and invested for 10 years at 8.8% per annum will yield approx $50,000. This sum of money can be used to pay off significant part of a child's tertiary education, dream holiday or just a saving for retirement.
Investment Period: 10 years
Regular Saving Plan: $200 per month
Assumption: Net dividends will be reinvested. No obligation to add new units on a regular basis.
Other Remarks: More riskier equities maybe added to this portfolio to achieve the required rate of return in the mid to long term. Portfolio performance will be updated at every month end.
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