Moo_Rich wrote a post · Oct 29 03:40

Q3 Fund Recap: where to invest amid volatility?

Hi, mooers!

Time has swiftly passed, bringing us to the final quarter of 2024.

When we reflect on the last few months, the standout theme has certainly been the interest rate cut. Which markets have thrived since the Fed's decision? How have your investments adapted to the decreasing interest rates, and what are your strategies moving forward?

Let's dive into your fellow mooers' investment strategies and earnings insights!

Most investors remain solidly focused on the US market.

Since July, the anticipated rate cuts have led many to adjust their asset allocations early, with many already seeing substantial gains.

Cash Plus continues to be highly favored in our community.

@ZnWC outlined his criteria for selecting new investments, emphasizing:

1) Stable return rate

2) Liquidity flexibility (preferably can be redeemed at any time with no lock-in period)

3) Short-term payout (preferably daily)

4) Minimum USD exchange rate risk

5) Lowest management fees

"Although rate cut will decrease the return from Cash Plus, T-Note, and Bond funds, the correlation is not so straightforward." Therefore, Cash Plus remains a strong option for its steady returns, liquidity, frequent income, low currency risk, and low fees. View more>>

Q3 Fund Recap: where to invest amid volatility?

@102414076 said that $Fullerton SGD Cash Fund (SG9999005961.MF)$ is a cost-effective option for investors as it gives competitive returns compared to bank deposits and good liquidity for investors as you can get your money the next working day for other investments or expenses. View more>>

@CasualInvestor noted that

Cash Plus + Smart Save the Ultimate Duo! View more>>

US Treasuries and related funds are also seen as robust options.

@Dadacaihighlighted returns from Cash Plus and explored opportunities in bond funds like $LionGlobal Short Duration Bond Fund (SG9999016000.MF)$ and $HSBC GIF Ultra Short Duration Bond MDis (LU2334458192.MF)$! View more>>

In anticipation of further rate cut, @sociable Dingo_8604 has increased his cash reserves and diversified into various bond funds such as $PIMCO GIS Total Return Bond Fund (IE00B1LHWR71.MF)$ $United SGD Fund (SG9999001382.MF)$ $HSBC GIF Ultra Short Duration Bond MDis (LU2334458192.MF)$ $LionGlobal Short Duration Bond Fund QDis (SG9999002646.MF)$ along with 7-day 6% fund coupons for minimum $1k sgd subscription, up to $100k sgd. “This is to maximize my returns.” View more>>

Meanwhile, @mr_cashcow has invested in $LionGlobal Short Duration Bond Fund QDis (SG9999002646.MF)$ , securing stronger base returns compared to Cash Plus. View more>>

Besides, a significant number are turning their investment focus towards dividend-paying balanced-asset funds, aiming to mitigate risk while seeking steadier returns in a fluctuating market.

@010Leo said: "With rate cuts expected, I'm leaning towards bonds and long duration tbills for stability.

What would I do, invest into both janus and Wellington slowly (rsp weekly) and monitor. into both $Janus Henderson Balanced Fund MDis (IE00B7KXQ091.MF)$ and $Wellington Multi-Asset High Income Fund MDis (LU2430703251.MF)$ slowly (rsp weekly) and monitor." View more>>

Earlier, @mr_cashcow tried out the $Allianz Income and Growth MDis (LU0943347566.MF)$ fund, and the result was not bad!View more>>

@ZnWC shared his rationale for selecting the $Janus Henderson Balanced Fund MDis (IE00B7KXQ091.MF)$:

1. Based on the 1M and 3M, the mutual fund has the highest return among the 5 recommended balanced funds. In the YTD performance, the fund comes out as the 2nd highest return.

2. The high return also means high risk. Based on the comparison chart, the mutual fund has high volatility. Hence, the return depends on macroeconomic conditions, one of which is the Fed rate cut.

3. The mutual fund portfolio consists of mainly large-cap growth stocks (high risk). See Style Box. Note that past returns may not guarantee future performance. It is prudent to invest within your means and hold for the longer term if an unfavorable result is shown (disclaimer). View more>>

Moreover, many experienced investors are also broadening their horizons by exploring investment options beyond traditional mutual funds.

@hmhinv pointed out that lower interest rates enhance the attractiveness of bonds, dividend-paying stocks, and REITs, possibly stimulating the stock market, particularly in sectors like growth stocks. He is focusing on $SPDR S&P 500 ETF (SPY.US)$, $Invesco QQQ Trust (QQQ.US)$,and $iShares Russell 2000 ETF (IWM.US)$, particularly now following their recent price retractions. View more>>

@Mars Mooo suggests that now is an opportune time to invest in high-yield bonds, $Cryptocurrency (LIST2993.US)$, $REITs (LIST20866.SG)$ , and small-cap stocks for potentially higher returns. View more>>

In particular, some mooers are also eyeing opportunities from the European market.

Following the ECB's interest rate cut of 25 basis points on 6 June, their first since 2019, aimed at boosting the eurozone's recovery, investors are anticipating fresh opportunities in European bonds, stocks, and property markets.

@SneakyBear views the lower interest rates as a chance to reduce borrowing costs, which could escalate property values and investments. The sector has been languishing since the onset of COVID-19 and subsequent rate hikes. From this angle, the $Janus Henderson Pan European Property Equities Fund (LU1059379971.MF)$ has been performing robustly over the past year, significantly outperforming others. View more>>

@Dadacai commented on the renewed interest in the UK stock market from international investors as likely rate cuts by the Bank of England could precede those in the US. This could positively impact REITs and stocks. In comparison to the $BGF United Kingdom Fund (LU0171293334.MF)$, the $Janus Henderson Pan European Property Equities Fund (LU1059379971.MF)$ is seen as more volatile and risky (higher standard deviation). View more>>

Finally, the Chinese market has shown considerable volatility since the end of September. Are any of you involved in related mutual funds? What trends are currently catching your eye? Have you devised any new investment strategies? Please share your thoughts in the comments!

Once again, thanks for your ongoing engagement and insightful contributions! Happy Investing, and see you soon!

*A bonus of 50 points will be awarded to the contributors of the posts mentioned above!

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