Monday, 20 March 2017

Recommended Unit Trust Funds for IME Investment Portfolio 2017

This is a continuation post of from the blog post entitled "Invest Made Easy - Market Prediction and Investment Opportunities for 2017". In the previous post, determined the potential areas of investment for 2017 as well as constructed an investment portfolio based on those findings as shown below:
2017 Investment Portfolio as of 20th March 2017
Now that we are clear of the potentials areas of investment, next up is for us to determine related unit trust funds investing into those areas. In order to come up with the related funds, a few assumptions were made as stated below:
  1. Funds must be listed on an online unit trust platform. This is because an online platform offers a large variety of funds, therefore making portfolio construction much easier. The other reason is because of the low entry sales charges (between 0% to 2%) for funds.
  2. Similar funds are compared in terms of annualised returns. This helps to pick the best among the listed funds.
  3. Funds are also selected based on how much exposure a fund has to a particular country. This is needed especially when building a Shariah compliant portfolio.
Invest Made Easy's Recommended Funds for 2017 Portfolio
1) Combination of Conventional & Shariah Compliant Funds Portfolio
This portfolio contains 6 recommended funds catering to our 2017 investment portfolio. Each fund is specifically targeted to each identified area of the portfolio. This is how our recommended funds 2017 portfolio looks like:
Combination Funds for Portfolio 2017

2) Fully Shariah Compliant Funds Portfolio
Constructing the funds for this portfolio is rather challenging due to the limited number of Shariah compliant funds with overseas exposure. To resolve this problem, I have looked through numerous factsheets of Shariah compliant funds to seek out funds with the highest asset allocation into areas listed in the 2017 portfolio.

For Japan and Europe areas, I have picked Aberdeen Islamic World Equity Fund as the recommended fund. Looking into the fund's country allocation, 11.6% is invested into Japan equity and 40.2% is invested into Europe equity (UK, Germany, France, Sweden and Italy). Having high % exposure into Japan and Europe makes Aberdeen Islamic World Equity Fund the preferred Shariah compliant fund for our 2017 investment portfolio.

Aberdeen Islamic World Equity Fund Country Allocation
Taking the above into consideration, here's our recommended fully Shariah compliant portfolio for your reference:
Fully Shariah Compliant Fund for Portfolio 2017

Full list of our recommended funds:

RHB Gold and General
Affin Hwang World Series Japan Growth
TA European Equity
TA BRIC & Emerging Markets
AmAustralia
RHB Big Cap China Enterprise
Precious Metal Securities
Aberdeen Islamic World Equity Fund
Eastspring Investments Dinasti Equity


That's all for this post! 

If you have further questions about the recommended funds or about the portfolio, feel free to drop me an email at shanesee03@gmail.com

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