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Written by Wilfred Ling
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Saturday, 07 February 2009 |
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Someone met me for consultation and showed me what he should do with his existing investment portfolio. It was a regular saving plan setup many years ago. When I saw the existing market valuation vs the total capital invested into the portfolio, this investor earned 758% in absolute return! Sounds really great! But he highlighted to me one detail of the portfolio: apparently 90% of the portfolio is into one particular fund which has been suspended probably due to massive redemption as that particular fund invested in a sector that is freefalling in value. Poor thing! Once again, it is important to diversify the portfolio as one can never know which investment can turn out to be a lemon.
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