Can you look at this and advise me which is a good one to invest into. MY needs are:
1. I need to have a secure 5% return for a period of 5 to 10 years.
2. I cannot afford much loss of capital.
3. I do not need to make any redemptions for another 5 years.
In line with your risk profile and stated investment preferences, the below options are for your consideration:
1) APPROVED LIST: consist of non-SGD pure Fixed Income instruments, focusing on 5 years tenure, 5% yield to maturity and investment grade credit rating
2) 642CM: This would be the closest SGD pure Fixed Income instrument, with yield to maturity 3%, with minimum amount less than SGD 250k. However, the tenure exceeds the 5 years tenure and lower credit rating, relative to list in #1
The above two options would be a great addition to your portfolio, as the main core of recurring income; the existing bond fund portfolio can wrap itself around this core for a move up in risk class.
Alternatively, you can also consider the below SGD denominated bond funds for a continued focus on recurring income:
1) Templeton Global Total Return Fund (SGD): aims to maximise total investment return consisting of a combination of interest income, capital appreciation, and currency gains by investing principally in a portfolio of fixed and/or floating rate debt securities and debt obligations issued by government and governmentrelated issuers or corporate entities worldwide as well as certain financial instruments for investment purposes. YTD up about 3% and non-guaranteed monthly dividends of about 4% paid
2) Franklin High Yield Fund (SGD): aims to earn a high level of current income and seeks capital appreciation when consistent with its principal objective of high current income, by principally investing either directly or through the use of financial derivative instruments in Fixed Income debt Securities of US or Non-US issuers with investment grade or lower grade ratings. YTD up about 3.5% and non-guaranteed monthly dividends of about 6% paid
If you like to diversify among fund houses, you may also consider:
1)Asian High Yield (SGD): seeks a high level of current income and capital appreciation by investing primarily in high-yielding, sub investment grade securities of issuers that have their principal business activities in the Asian region. YTD up about 6.5% and non-guaranteed monthly dividends of about 6.5% paid
2)US High Yield (SGD): seeks a high level of current income and capital appreciation by investing primarily in high-yielding, lower quality securities of issuers that have their principal business activities in the United States. YTD up about 4% and non-guaranteed monthly dividends of about 5% paid