Issue No.


Back to index

It's Never Too Lat Or Early

This article is reproduced with permission from
Normandy Advisory Services Sdn. Bhd (Licensed Investment Advisor)
15th Floor Menara Multi-Purpose, No 8 Jalan Munshi Abdullah, 50100 Kuala Lumpur
Tel : 03 - 469 5560 Fax : 03 - 294 5561

This article is copyright and no part of it may be reproduced in any form without the prior consent of Normandy Advisory Services

To contact Normandy


Your investment horizon and age factor can be used as a general yardstick to evaluate your risk profile. The longer your time horizon, the less you need to worry about short-term fluctuations. Your actual investment will then depend on whether you are seeking growth, balanced or purely income returns. Determine the various investment classes under different risk categories (refer to Table 1 for a detailed breakdown).

Table 1. Typical Classification of Investment Portfolios


Risk Categories

Primary Goal

Principal Investments




stocks, unit trust funds



Growth + Income

stocks, unit trust funds, bonds, bond funds




bonds, bond funds, savings and fixed deposits

60 and above



savings, fixed deposits

Some characteristics of various investment options are summarized in Table 2.

Table 2. Typical Characteristics of Selected Investment Classes

Stocks/Equity Growth Funds

Bonds/Bond Funds

Fixed Interest

Short-term volatility Less volatile than stocks Little to no principal volatility
Long-term growth potential Less growth potential than stocks Limited growth potential
May provide income May provide more income than stocks Provides income

After determining your risk profile and asset allocation, create a model for your portfolio. Do not forget to review your portfolio every 6-12 months as your objective may have changed and your risk tolerance may have also varied. Remember not to put all your eggs in one basket - know the benefits of diversification.

Table 3. Model portfolio

A typical portfolio for a young family is shown in Table 3. Notice that the family is looking for a combination of growth and income and has allocated a small portion for international investments for diversification.

This asset allocation is for example only. Since individual investment goals, risk tolerance and time horizon varies from individual to individual, you need to determine your own risk tolerance and investment options before you invest.

Once you have your portfolio. You are set. You now have a model to enable you to move on. Some planning is better than no planning at all. Whether you are 5 or 50, itís never too late or early to start.

back to index

Reproduced with permission from Normandy Services Sdn Bhd, Tel:603-4695560 Fax:603-2945561