Some golden rules of investing

WHAT does the regular Singapore investor find most daunting? For those who are not professional investment managers, is it: a) No time (to track stock prices and manage portfolio); b) Don't know what's happening or how to analyse the market; c) Don't know what makes a good portfolio or how to construct one; or d) Other issues?

Between 2016 and 2017, volunteers from CFA Society Singapore collaborated with the Singapore Exchange to run public-education seminars once every three to four months for retail investors. The answer to the question above, we found through a "live" audience survey, was "c". Almost half of those polled said the biggest challenge they faced was the lack of knowledge on what constitutes a good investment portfolio, and how to put one together. In comparison, "b" - the second most popular reason - drew just under one in four votes.

Looking on the bright side, we're heartened that investors recognise the importance of having a strong portfolio. That they name this as their biggest challenge shows that they're well aware that investment is not just about buying (and selling) the right stock at the right time, but having a much more comprehensive plan.