Is it possible to build a portfolio of assets that allow Investors to sleep well throughout the nights, amid volatility? Certainly, although it might means missing some intermittent opportunities.
Diversification
As boring as it sounds: diversification, diversification, and diversification; rule no 1 is always about getting the right mix of assets into the portfolio. Ideally, an asset should not be more than 30% of total portfolio.
In volatile times, assets that decline in value will be offset by other assets that increase in value.
Gold
Over the centuries, gold has been regarded as safe asset especially when it comes to high inflation. This applies to even the most advanced economy in the world.
For some investors, gold is deemed useless and considered as non-productive asset. Nevertheless, its gold haven status is undeniable.
Blue Chip Stocks
Stock market is most prone to volatility generated by global news. Nevertheless, some top tier stocks (e.g. BBCA, SRTG, HRUM, ARTO) offer stability and consistent growth.
Properties
Even without any capital gain, properties can still generate rental yield. As well, properties rarely lose value over the long run. The increasing land value usually compensates the depreciating building value.
Bank Deposits
Despite moderate return; bank deposits will always provide safe and sound option.
Bank deposits in Indonesia offer quite attractive returns (around 2 – 4%), roughly in line with the inflation. Compare with the interest rates in other countries.
Government Obligations
Depending on the type of bonds, the return can be as high as 8%.
https://www.bca.co.id/en/Individu/produk/Investasi-dan-Asuransi/obligasi/Pilihan-Produk-Obligasi
Safe investment improves the state of mind. Invest well, sleep well…
Disclaimer: NOT FINANCIAL / INVESTMENT ADVICE. This article is of writer’s personal opinion. Any information contained here is for education and informational purpose only. Readers should seek other sources or professional advice for further clarification where deemed necessary.