The Singapore 3-fund portfolio explained

The Boglehead Singapore 3-fund portfolio is an adaptation of the Boglehead 3-fund portfolio, which was suited for American investors. The Boglehead 3 fund portfolio basically uses 3 funds, in order to achieve global diversification, and thus receive the market rate of return.

It was named after the main advocate of index investing and the founder of the Vanguard Group, John C Bogle. John Bogle strongly recommends low costs for investments, because costs reduce the long-run return of any portfolio.

There are three funds in the Boglehead 3-fund portfolio:

– Domestic stock index fund

– International or world stock index fund

– Domestic bond index fund

Rationale for the 3-fund portfolio

The 3-fund portfolio encompasses a mix of domestic and global equities, as well as a mix between equities and bonds.

Equities and bonds

In the past history, equities have …