Showing posts with the label financial markets

Why REITS deserve a place in your portfolio

Real Estate Investment Trusts or REITs in short were established as an asset class in the US in the 1960s to provide investors a platform to invest in income producing real estate without directly owning the real estate. The asset class was introduced in Singapore in 2002 with the listing of CapitaLand Mall Trust. Since then, many more REITs were listed both in Singapore and the region and the asset class is widely accepted as a staple for investors looking for income. REITs offer income investors a few benefits to other income producing assets. REITs are generally  granted tax benefits where the distribution is tax exempt if the REIT pays out the bulk of their income, typically 90%, to unitholders. REITs also offer more liquidity to directly buying into real estate, where you can easily liquidate your holdings in the capital markets. In this article, I highlight 3 reasons why REITs deserve a place in your financial portfolio. Photo by Swapnil Bapat on Unsplash     "With the reop

3 things to do during a market downturn

The financial markets have been in a correction phase since the start of the year. Many of you are understandably jittery with the ongoing corrections. Market corrections are part and parcel of investing in the financial markets, but that does not stop fear and panic from setting in from time to time when investors are unsure what to do during a market downturn. So in this article, I outline 3 things I think you should do in an ongoing market correction. Credit: 1. Stop looking at your portfolio  Fear is very often the number 1 reason people do badly in investments. Panic selling is a very common phenomenon, where investors tend to sell when the markets are low which is the opposite of what you want to do. If looking at your portfolio in the red induces fear, one of the things you can do is to stop looking at the portfolio. If your investments are fundamentally sound, the markets will recover and your portfolio will likely be fine in the mid to