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As promised, I will be keeping a record of my Syfe Equity100 performance on a monthly basis. As I’ve mentioned before in my post, Syfe will become a “managed funds” portion of my entire portfolio. I have a long time horizon with Syfe going forward and will be investing into it for at least 10 years.
For investors using Stashaway, you may want to check out my article here where I compare the differences between Stashaway and Syfe, and see which one may be more suitable for you based on your own risk profile, age and time horizon.
Likewise for investors using Autowealth, you can see my comparison between Syfe and Autowealth here!
Syfe as a Robo Advisor, is also an effective and affordable way for me to invest since I don’t need a huge upfront capital to invest and can just pump in any additional spare cash into it.
It helps me to diversify into US equities as well as international stocks exposure, which is always a good thing since I get more diversification aside from my DIY portfolio. I started the Equity100 portfolio on the 5th of July 2020.
Here’s my monthly Equity100 Summary:
Total invested amount: $3200.16
Current Value: $12,106.73
Portfolio Return: +202.41% (Inflated by referral bonuses)
Total contribution this month: $400.16
Fees Paid: – (Fee Waiver!)
Total Dividends Received (YTD): $31.50 (SGD)
Thank you readers who used my referral code! A significant amount of “returns” are a result of referral bonuses from readers (hence the inflated time- weighted return) so I’m really grateful for all your support and for having faith in me and my articles!
I write these articles in my free time so I really appreciate each and every one of you for your trust and support!
Previous Months Portfolio Updates
July 2020: S$1217.56 (+10.69%)
August 2020: S$2565.71 (+35.22%)
September 2020: S$4879.85 (+39.42%)
October 2020: S$5964.84 (+61.21%)
November 2020: $6859.15 (+117.81%)
December 2020: $9329.27 (+163.23%)
January 2021: $10,891.05 (+202.28%)
Current State of the Economy
With a giant stimulus check coming our way, it means our global economy will be flooded with even more new money which means one thing on my watch: Crypto season!
Divestment and asset re-allocation
As such, I am divesting a portion of my equities and will be recycling a part of my allocation from Syfe Equity100 into crypto instead. I am doing so to better optimise my portfolio for the future as currently my portfolio is overweight on stocks alone and may not be diversified against systemic risk of the stock market.
By diversifying into crypto with an optimal allocation of 25% crypto and 75% stocks, I can attain higher Sharpe ratio which translates to better overall risk-adjusted returns for my portfolio over the long run.
For the state of the stock market, it looks like the market is trading sideways recently as investors wait for news of the 1.9T stimulus and treasury yields rising which is threatening the growth trajectory of growth and tech stocks.
While the market continues to be volatile, I have also recently added more ARKW and ARKK into my DIY portfolio. I also added a new position NIO, as their growth story is really compelling and their battery swap technology is worth a second look, but of course, I am timing it for earnings date on 1 March so it might be a short term trading position instead.
The diagram above shows how Equity100 is performing versus benchmark indexes. And it’s a good sign: It is outperforming the market! Even with the recent market volatility, the portfolio managed to perform even with its tech heavy allocation in QQQ.
Think Long Term
Regardless of what is going on in the stock market, always remember that investing and gambling are completely different things even though both can occur on the stock market. If you go into the stock market thinking you can make huge returns in a matter of days, you will easily lose a huge amount of capital because you are being irrational and that is basically more luck than taking calculated risk (essentially gambling). Thus, to those who saw a decline in their portfolio recently, don’t be upset, simply stay calm, continue to invest and understand that stocks go up in the long run because businesses grow and their stock price will naturally follow. Tune out short term noises and stay the course.
The Power of Low Fees
One huge advantage I have as an investor is paying very minute fees which can really eat into returns in the long run because I am using Firstrade to buy US Stocks which has absolutely $0 fees and extremely fast wire transfers for deposits and lightning fast trade executions. Aside from paying $0 commission fees, Syfe also has very low fees each month of 0.65%/12
Ever since I switch to Firstrade and Syfe last year as my main investment vehicle, I saved up on a ton of fees and hence able to achieve way better returns than before. I saved up more than 5 times the fee paid in 2018, 2019 and 2020 this year due to the switch and I am really happy thus far.
Of my entire investments in 2020, fees only take up 0.1% of my entire portfolio! (2018+2019+2020 combined across all brokers and Robo)
Alright that’s it! For now, think long term, tune out the noise and avoid the temptation of gambling meme stocks, think of the companies that will do well in the long run simply find bargains/dollar cost into your positions. If you need some inspiration for companies to research, you can check out my post on 5 stocks to buy if the market crashes here.
I use StocksCafe to keep track of all my investments (include Robo) + research on stocks and track my portfolio performance against various indexes as shown above. You can also view my portfolio as well as many others so you can compare your own performance with other investors. If you are interested in signing up, you can use my referral link to sign up and access premium features for 1 extra month for new users. (3 months)
Syfe Promo Code
For people who are interested to invest into Syfe and wants to open an account, you can use the promo code below as a bonus!
Promo Code: SRPTH8LK3
$10 bonus for the first deposit of $1000 (or more)!
$50 bonus for the first deposit of $10,000 (or more)!
$100 bonus for the first deposit to $20,000 (or more)!
Note: Bonus is applicable on the first deposit made only. The bonus will be automatically credited to your portfolio and invested along with your existing investments
Thank you for reading and happy investing!
*Disclaimer: The content above are copyrighted and all rights reserved to Investing Beanstock only. If you want to cite my content, do provide a backlink and contact me for more information. Plagiarism will be met with legal actions.