Posts Tagged ‘Fund Fact Sheets’
Prudent Fund Management versus Aggressive Asset Allocation
Prudent Fund Management versus Aggressive Asset Allocation
by: Kendrick Chua, the Wealth Warrior
Investment philosophy can only be either of the two things: Conservative or Aggressive. I don’t believe in being neutral. You can’t.
Of course, each of this philosophy has its own pros and cons and none can claim it is the best strategy there is. We should all know by now that there is none.
Prudent as the more politically correct word as our fund managers says, is more practical in a bear market. Being prudent meant holding large amount of cash or selecting only the bluest of the blue chip stocks. That way, when the fund goes down (further), the funds would not be greatly affected since a significant portion is invested in cash. Fixed-income is another option.
Additionally, there will be ammunition to buy select issues at bargain prices. Since there will be no need to sell losses just to raise cash.
