Asset Allocation

What is the relationship between return and volatility of each asset class?

• 
  Higher return comes with higher risk

• 
  Higher risk guarantees higher return

• 
  

  Higher return comes with lower risk

• 
  

  Lower return comes with higher risk

What is asset allocation?

• 
  An investment strategy that attempts to balance risk versus reward by constructing a portfolio of many assets.

  
  

• 
  A strategy to avoid any risk in investments.

• A technique to invest only in short-term assets.

• 
  A method to invest in a single asset to maximize returns.

What are the benefits of asset allocation?

• 
  Increasing the risks of specific asset class

• 
  Increasing investment volatility

• 
  Reducing the risks of specific asset class

• 
  

  By stabilizing the portfolio through good times and bad times.

Why asset allocation provides investors with more peace of mind regarding market timing?

• Lower need to time markets due to lower volatility.
• Higher chance of missing out on market returns

• Higher need of market timing to avoid significant loss

What are the steps to build your portfolio?

• 
  1 Know Yourself
  2 Portfolio Construction
  3 Implementation
  4 Monitoring & Rebalancing

• 1 Know Yourself
  2 Portfolio Construction
  3 Monitoring & Rebalancing
  4 Implementation

• 1 Portfolio Construction
  2Know Yourself
  3 Implementation
  4 Monitoring & Rebalancing

• 1 Portfolio Construction
  2Know Yourself
  3 Monitoring & Rebalancing

  4 Implementation

What is not a factor affecting investor's ability to take risk?

• Income and assets

• Time horizon

• Investment goals

• Bad/Good investment experience

According to the rule of thumb, what is the typical allocation percentage for the Core Portfolio?

• Less than 20%

• 20-50%

• 80-100%

Which investments should be considered as core / satellite portfolio?

• Core:
  Multi-asset funds
  
  Satellite: Bitcoin

• Core:
  Global equity
  
  Satellite: China equity

• Core: Vietnam equity
  
  Satellite: Global equity

• Core: Tech stocks
  
  Satellite: Global fixed income

What portfolio would you suggest to your business-owner friend?

• 80% Multi-asset fund
  20% Global tech funds

• 40% Global equity

  20% Thai equity

  10% Global bonds

  10% Cash

• 70% Global bonds

  25% Global equity

  5% Cash

• 100% Multi-asset fund

What is your version of takeaways from this session?