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2017 Investment Portfolio by Invest Made Easy |
Now that we are clear of the potentials areas of investment, next up is for us to determine related unit trust funds investing into those areas. In order to come up with the related funds, a few assumptions were made as stated below:
- Funds must be listed on an online unit trust platform. This is because an online platform offers a large variety of funds, therefore making portfolio construction much easier. The other reason is because of the low entry sales charges (between 0% to 2%) for funds.
- Similar funds are compared in terms of annualised returns. This helps to pick the best among the listed funds.
- Funds are also selected based on how much exposure a fund has to a particular country. This is needed especially when building a Shariah compliant portfolio.
Invest Made Easy's Recommended Funds for 2017 Portfolio
1) Combination of Conventional & Shariah Compliant Funds Portfolio
This portfolio contains 6 recommended funds catering to our 2017 investment portfolio. Each fund is specifically targeted to each identified area of the portfolio. This is how our recommended funds 2017 portfolio looks like:
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Combination Funds for Portfolio 2017 |
2) Fully Shariah Compliant Funds Portfolio
Constructing the funds for this portfolio is rather challenging due to the limited number of Shariah compliant funds with overseas exposure. To resolve this problem, I have looked through numerous factsheets of Shariah compliant funds to seek out funds with the highest asset allocation into areas listed in the 2017 portfolio.
For Japan and Europe areas, I have picked Aberdeen Islamic World Equity Fund as the recommended fund. Looking into the fund's country allocation, 11.6% is invested into Japan equity and 40.2% is invested into Europe equity (UK, Germany, France, Sweden and Italy). Having high % exposure into Japan and Europe makes Aberdeen Islamic World Equity Fund the preferred Shariah compliant fund for our 2017 investment portfolio.
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Aberdeen Islamic World Equity Fund Country Allocation |
There is no specific Shariah compliant fund catering to Australia area. The closest fund that I could find with investment into Australia equity is Aberdeen Islamic Asia Pacific ex Japan with 10.5% exposure. The same fund also 17.9% exposure into India and 6.1% exposure into China thereby catering to the Emerging Market area as well.
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Aberdeen Islamic Asia Pacific ex Japan Fund Country Allocation |
taking all the above into consideration, here's our recommended fully Shariah compliant portfolio for your reference:
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Fully Shariah Compliant Fund for Portfolio 2017 |
Full list of our recommended funds:
RHB Gold and General |
Affin Hwang World Series Japan Growth |
TA European Equity |
TA BRIC & Emerging Markets |
AmAustralia |
RHB Big Cap China Enterprise |
Precious Metal Securities |
Aberdeen Islamic World Equity Fund |
Aberdeen Islamic Asia Pacific ex Japan Equity Fund |
Eastspring Investments Dinasti Equity |
That's all for this post!
If you have further questions about the recommended funds or about the portfolio, feel free to drop me an email at shanesee03@gmail.com
danny_dsk
No US allocation?
2017-03-20 14:55