How to improve on my year 2023 portfolio for 2024?

[tonyangiano]

My Current portfolio

MALE 32 Y.O non-bumi

All my returns are on a yearly basis. so any suggestion should be on that too.

- Stocks : Total investment RM90k

RM72k Dividend and slow growth stocks - Maybank, RHB, KIPREIT

RM18k Short term stocks (holding less than 3 months) - PCHEM, UCHITEC (this will change weekly from selling and purchasing)

Total returns for year 2023:

Nett profit (including trade losses/gains and dividends) RM6065 which is returns of 6.74%

- FD 3.8% 6months tenure. already matured

RM798 - 3.8% returns

- ASM2 non bumi so cant get asnb

Total amount currently: RM197,402 (after august dividend payout)

year 2023 dividend payout RM8500.59 which is returns of 4.5%

- TNG

currently sits at RM3860 - GO+ yearly returns 3.4% (RM131 annually)

- EPF is not related so no point in this discussion

- Cash on hand RM72k available for investment around RM20k to RM30k

This amount can be increased if taken out from ASM2 (

 

[mikee1877]

@tonyangiano You are doing quite well already @ 6.74% return.

I think, the only way you can increase your returns is to invest in more risky assets/investment which can give potentially higher return, e.g. buying stocks overseas, crypto, etc.

Would not recommend property because property prices have been stagnant due to large overhang for both commercial/residential, and you have a lot of additional hassle when renting out (there's also legal fees, maintenance cost, etc.)

 

[tonyangiano]

@mikee1877

Would not recommend property because property prices have been stagnant due to large overhang for both commercial/residential, and you have a lot of additional hassle when renting out (there's also legal fees, maintenance cost, etc.)

Thanks for the info. But i believe a lot of the overhang units are in southern part of malaysia. Im at central malaysia. obviously, yes additional cost will occur with ownership of a property but I also do notice renting out commercial unit in higher demand areas are not too difficult because i do manage some properties in the company i work for. The shoplots or factories are rent out quick with help of mudah and agents.

since i have my ownstay unit secured (bought the new unit cheap during covid and free MOT from government) I am just surveying incase of a good deal to use my last 10% deposit unit.

 

[machia]

@tonyangiano just look for property with proven yield > 9%

be patient, but when the opportunity is there, be decisive. oh, don't believe property agent. do the legwork by yourself.

 

[echo73]

@tonyangiano

- looking for investment which better returns compare to my stock portfolio of 6.74% annually including capital gains and loss

well, historically the S&P500 has been giving around 10%~ returns yearly on average. https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp

Combine that with the ever worsening rates of USD/MYR year after year, it might generate a tidy sum if you're looking for long term investments.

- looking for long term low risk investment which has better returns than my current FD/ASM/TNG investment. capital has to be secured

Versa still has promo for first 60k @ 4.3% for their cash funds.

- suggestions on other investment - property, gold, kelapa sawit etc etc?

Stick to the ones you know and are comfortable with. No point getting financial advice from randoms over the internet. If you invest based on someone else's suggestion and do not know what you're getting yourself into, you're in for a bad time as not everyone's risk profile/financial situation is the same as yours.

 

[tonyangiano]

@echo73 thanks for the reply firstly,

well, historically the S&P500 has been giving around 10%~ returns yearly on average. https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp

Combine that with the ever worsening rates of USD/MYR year after year, it might generate a tidy sum if you're looking for long term investments.

2022 has been quite bad but since begin of 2023 it has been picking up steam. So probably will allocate some funds into it after doing some homework

Versa still has promo for first 60k @ 4.3% for their cash funds.

How are the fees like? and how are dividend given? on monthly? annually?

Stick to the ones you know and are comfortable with. No point getting financial advice from randoms over the internet. If you invest based on someone else's suggestion and do not know what you're getting yourself into, you're in for a bad time as not everyone's risk profile/financial situation is the same as yours.

well obviously one has to take every advise with a grain of salt. Thus i do ask for a general annual returns on the suggest investment then I am off to do my homework on that particular item.

 

[echo73]

@tonyangiano

How are the fees like? and how are dividend given? on monthly? annually?

https://versa.com.my/versa-cash-3-2-net-return-rate-promotion/

0 sales fee, 0 redemption fee. 0.3% management fee,0.05% trustee fee.

"The promotional net return rate of 4.3% p.a. is after fees. This means that the net return rate of 4.3% p.a. has already deducted the Management fee & Trustee fee."--as from their website.

Daily updates on unit price. It's basically a money market fund which is currently offering a 4.3% promo rate.

Do hit me up with a PM if you need a referral code.

well obviously one has to take every advise with a grain of salt. Thus i do ask for a general annual returns on the suggest investment then I am off to do my homework on that particular item.

Just make sure to diversify according to your risk tolerance especially in this high inflation period where US inflation metrics and monetary policy play a significant role in global market conditions.

 

[jfarmer]

@tonyangiano FP here.

some notes ( just my opinion btw, NFA since i dont know your whole scenario)

TNG & FD - pick one (the higher ones obviously) They are essentially the same

Stocks - diversify outside Msia. regional (Asia/Asean/Europe/US)

ASNB - its essentially a unit trust/mutual fund. I think you allocate too much to this. try reducing by half and invest it to other higher risk instruments.

Alternative instruments to explore (suggestion only):

precious metals (gold, silver) thou wont recommend going into gold, currently high

property - go into the auction market and grab a few deals. Remember, your looking for good rental deals not own stay. I wont advise too much, better talk to a REN on this.

crypto - pls dont be greedy. allocate no more than 5% of total portfolio into this. Can do some DCA aslo. btc halving soon in 2025, not a bad time to start accumulating. warning : extreme volatility

private equity funding - look into pitchin for some good deals into entry level biz with huge potential. you need to do homework for this thou. dont go in blindly

yourself : read more books, learn about big biz and how they operate, read about economy. heck do a CFP course to have better understanding

Other points to note :

since you have the cashflow, please check all your insurance needs (medical/life/accident/disability) last thing you want is a calamity to wipeout all your hard earn bounty.

estate planning. get a will, ensure got nominations/beneficiary sorted out for whatever investment/property/asset you have.

tax planning. max out all your eligible reliefs (epf, insurance, prs, etc...) its free, unseen money.

lastly : Dont get scammed. dont be too greedy and rush for ROI without the proper due diligence.

 

[georgiew]

@tonyangiano Is that 6.74% for your equities portfolio total returns? Or only dividend yield?

Comparing YTD Total Returns in MYR (i.e. price returns + dividend yields):

Benchmark -> VT	17.86
Benchmark -> S&P 500	24.70
OP's PORTFOLIO	6.74
UCHITEC	15.28
MAYBANK	11.52
KIPREIT	6.06
PCHEM	-13.52

Ticker
TR %

You could've saved yourself a lot of trouble and anxiety by just buying into an all-world ETF (VT) and still outperformed your own portfolio by ~160% (6.74% vs 17.86%) in relative performance. In MYR terms, you could've made MYR16074 in total returns. In other words, you made RM9400 less by not buying the all-world ETF.

Now to be clear, index investing is not the highest returning investing strategy, it's core concept is that it protects against easily avoidable idiosyncratic risk of an extremely narrow investing philosophy, e.g. investing only in one country, or only in one sector, etc. However, in this case, not only it protects against the underperformance of the portfolio manager (you), it also protects against the underperformance of a country's stock market (KLSE).

As for your fixed income portfolio, it's fine I guess? Most fixed income investments in MYR are returning sub 4.5%. If you want, you can look into investing in US treasuries via the SGOV ETF. It's returning 5.3% p.a at the moment (performance in USD, not sure what is the MYR performance).

 

[tonyangiano]

@georgiew Thanks for the reply. I have some question on the table provided

Is that 6.74% for your equities portfolio total returns? Or only dividend yield?

Sorry forgot to mention it is only realised profit/loss of my stocks sold (not mentioned above) and dividend. So if i were to take unrealised profit/loss of all my stocks it will be rm2010+RM6065=RM8075, so in total 8.97% ~ 9% annual returns.

Comparing YTD Total Returns in MYR (i.e. price returns + dividend yields):

TickerTR %Benchmark -> VT17.86Benchmark -> S&P 50024.70OP's PORTFOLIO6.74UCHITEC15.28MAYBANK11.52KIPREIT6.06PCHEM**-**13.52

You could've saved yourself a lot of trouble and anxiety by just buying into an all-world ETF (VT) and still outperformed your own portfolio by ~160% (6.74% vs 17.86%) in relative performance. In MYR terms, you could've made MYR16074 in total returns. In other words, you made RM9400 less by not buying the all-world ETF.

This is very interesting. I have just checked on VT ETF and this is the result i found. do correct me if i am wrong.

https://investor.vanguard.com/investment-products/etfs/profile/vt#performance-fees

ANNUALISED RETURNS

1 year 10.13%, 3 years 6.77%, 5 years 7.58%

(this is based on the average annual return of VT ETF on the website. I would like to check with your side how do i get 17.86?)

AS for SP500

https://www.spglobal.com/spdji/en/indices/equity/sp-500-top-50/#overview

ANNUALISED RETURNS

1 year 24.27%, 3 years 9.80% , 5 years 12.29%

so based on this information. since the drop of s&p500 in 2022 the rebound in 2023 was really good. but overall on a longer term it would have a yield of 12.29% annualized for 5 years. still better than what i have at 9%

Now to be clear, index investing is not the highest returning investing strategy, it's core concept is that it protects against easily avoidable idiosyncratic risk of an extremely narrow investing philosophy, e.g. investing only in one country, or only in one sector, etc. However, in this case, not only it protects against the underperformance of the portfolio manager (you), it also protects against the underperformance of a country's stock market (KLSE).

Yes I agree on this part. The only reason i have invested in KLSE is because i do invest a lot in blue-chip stocks and also have small indication of information on market due to my work in manufacturing industry. Thus allowing me a 9% return for 2023

As for your fixed income portfolio, it's fine I guess? Most fixed income investments in MYR are returning sub 4.5%. If you want, you can look into investing in US treasuries via the SGOV ETF. It's returning 5.3% p.a at the moment (performance in USD, not sure what is the MYR performance).

Hmm sure i will look into it. but also i need to consider the fact of liquidity. because ASM is extremely liquid which i like.

 

[georgiew]

@tonyangiano The returns I quoted for VT and SPY are in Ringgit, year-to-date (since we're comparing 2023 performance), so the 17.86% are inclusive of forex impact. You can get a better idea for how different instruments perform by using TradingView's compare function, and normalise them by the same currency.

The counterpoint to ASM's liquidity is that it is only valid if you can be physically present at an ASNB agent branch outlet, otherwise you're only limited to RM2000 per month online withdrawal.

 

[archieraptor]

@tonyangiano For local stocks exposure you already have EPF and ASM2 so i would not bother with individual bursa stocks.

I would consider
1. Self contribution to Epf for local exposure
2. And the rest in foreign index funds like singapore or US s&p etf (irish domiciled for tax savings) or even berkshire hathaway

 

[jfozzy]

@tonyangiano Buy XRP it's that easy

 

[ivan777]

@tonyangiano For FD/TNG: Given this is your liquid rainy day fund, you don't have to do both unless it's for some e-wallet CB thing. Look at KDI Save, it's giving around 4% and its pretty fast in its deposit/withdrawal time. I would have recommended Versa in the past, but the time it takes to receive the funds is getting worse and worse, so no point getting angsty for the sake of the 0.3%

For your investments, what is your goal? Building a dividend yield vs a capital growth game is different so perhaps think about the lane you want to be in.

You are too heavy into one sector here, and too underexposed to other countries. Look into SG and US as well for some exposure to balance out the ebbs and flows of the local market.

My YTD is around 14.4%, which tracks the S&P500 so I'm okay thus far lol