3 things that could make the biggest impact on your investment return

Qiaojia Li | CEO and Investment Advisor

Whether you’re an experienced, seasoned pro of an investor or just a newbie starting to dip your toe into the world of stock markets, we’re all chasing a great return on our investment portfolio. Our investment advisor Qiaojia Li highlights three key things that could make the biggest impact on your investment return.

1) Pay attention to your fees

No matter if you let someone manage your money for you, or you trade through a DIY platform — sometimes surprisingly expensive, and not necessarily cheaper than wealth managers, while you have to do all the work!

Are you fully aware of all the fees associated with your investments?

Here are the typical fee categories for a retail investor:

— Custody fee (ongoing fee to safeguard your assets, usually a percentage of asset value)
— Trading cost (one off cost for every buy and sell order, fixed or a percentage of each trade value)
— Product fee (ongoing, each portfolio manager charges a fee, for example, a fund of fund means there are 2 layers of fund management fees)
— Advice fee and/or management fee (can be one off or ongoing, this is typically by your financial advisor, separate from your fund manager

2) Do not trade single company stocks

DIY trading apps with zero commission have become popular in recent years; it gives people a more hands on feeling with their investment, and just takes one minute to download, and another minute to fund the account and get into action of buying and selling, with great fun, and seemingly zero cost. However, the challenge with this is knowing how to decide which company to buy, at what price and quantity, and when to sell? What percentage of your total amount is allocated to this particular company? How do you predictably, or at least confidently make a good return?

3) Thematic investing may accelerate your wealth creation by generating above market return

A way to mitigate the single company risk, but still have a chance to “beat the market” is by thematic investing.

We guide you through your financial journey to the future you want, by our learning algorithms and human insight.