Does your unit trust/ share plan has Emerging Market in the portfolio? Time to review your portfolio

Updated: Nov 14, 2021

Because if you do, you will see that the overall performance for Emerging Market is not as good as its counterpart as EM miss out on 2021 stock rally in developed economies.

As per reported by FT, Emerging Market (EM) stocks are lagging behind those in developed economies by the most since 2013’s “taper tantrum”, as investors fret that global tightening in monetary policy will trigger a flight away from the asset class. The same applies to EM bonds as the fall in prices more than offset the relatively juicy interest payments investors earn from holding the debt.

Furthermore, analysts warned that market conditions could deteriorate further after the Federal Reserve announced plans this week to begin reining in its coronavirus crisis stimulus measures. If you were to look at historical data, the US central bank's decision to begin easing its economic support measures prompted a sell-off in EM assets in 2013 as this was part of a broad shake-up in financial markets dubbed the taper tantrum.

Perhaps it's time to re-look at the funds that you are "passively" invested and consider your options. This is perhaps why one of the reasons why I was never a big fan of "bundled" investment. Don't get me wrong, I have nothing against any unit trusts nor regular share investment plan that invest in a basket of funds. It is my personal preference to actively choose where I want the main bulk of my funds to go (I am relatively OK with bundled investment for insignificant sum). My personal belief is that I'd rather be the one to lose my money myself and understood my own mistake rather than having someone else lose it for me and I still do not understand what happened. I'd love to be the captain of my own investment journey where I decide what speed to set, where to stop and where I will land. Rough seas ahead but I learn along the way.

Please note that this is not a financial advice and the above are just my own opinion. As with all financial products/investments decision, please do your own due diligence.

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