Last updated on April 23rd, 2019 at 05:06 pm
First State Bridge is frequently among the most popular “recommended funds” by banks and advisers. Deservingly so in my opinion.
I’m not saying that First State Bridge is the best investment for you
But rather, it is a FANTASTICALLY simple method if you are not started in investing yet.
First state bridge is a “balanced-risk” fund that helps you get invested into equities and bonds together.
That means you get
- FREE diversification through one fund
- Smoother performance than pure equity ETF/funds or investing in shares.
As shown below, it is held almost 50%-50% allocation and investing into such a fund gives you FREE auto-rebalancing between equities and bonds!
First state bridge is Asian in focus and if you like prospects of Asian companies, this definitely works.
First State Bridge compares well to other CPFOA “balanced funds?”
There are the only these few CPF approved balanced funds.
It has superior 3y, 5y and 10y average p.a performance than its peers. The results in the table is already nett performance.
The FTIF Templeton Global balanced fund is abit different as it will invest for you globally (as its mandate) and some will be into US equities
I personally think US equities are expensive in valuation currently.
First state bridge also has the largest fund size (>SGD$1.5B) and the lowest annual expense ratios (1.42%p.a) amongst these 4 funds.
How did First State Bridge do in a financial crisis and against benchmark?
This is a very rate snapshot of how it did in the financial crisis. I was marketing it back in those days already.
As shown above, it lost merely 35% from Oct2007 to Dec2008 which is actually pretty low. STI index lost more than 60%?
Of course they are not apple to apple. First State Bridge is diversified.
Against the benchmark which is a balanced approach, it has also consistently done well.
Ready solution for you to start investing your CPFOA
Take a look at this
It shows that in 2015, 58% of members lost money on their CPF investments. BUT in 2016, 78% made more than 2.5%!
What does this mean to you?
- Investments have risk, you could lose. If you hate it then probably don’t invest. Keep the 2.5%
- Investments need time to perform. One year you lose the next few you win.
If you can invest long term with your CPF,
Its kind of a NO BRAINER to use this fund to start investing your CPFOA.
And we can expect the more conservative 7.1%p.a past returns that First state bridge has delivered since inception. (note: past return does not guarantee future returns).
Now imagine this,
You want to start investing but you want proper advice
Because you have heard some people losing money when investing
Or you want it to be simplified and simply outsourced because it is tiring to monitor
Drop me an email at firstname.lastname@example.org
to get your appointment for an INVESTMENT REVIEW.
PS: At certain junctures, there are different opportunities to further increase returns beyond just First state bridge
Here’s what you can look forward to
On a chart, this is how it compares (the green line is First state bridge).
If you are interested to read more, I’ll explain more on why many do not invest well
and how I can help you get 5-10%pa over the long term with certainty. Click below