Throughout my investment journey I learned the importance of diversification and dividend investing. Diversification hedges against single stock/bonds mishap and over confidence in one company; dividend provides the psycological consolation of recurring income from my investments.

Last year after much deliberation, I liquidated part of my stocks portfolio and purchased unit trust in order to diversify the systemic risk. I still hold a good number of blue chips like DBS, SGX CAMBRIDGE, OUE, Semb Corp Industries but I decided that no matter how diversified I am in local stocks, I am subjected to political and country risks. If one day the PAP is ousted from power, our stock market may take a severe beating.

Last year, I pledged my stocks for a credit line with my then bank at 1.05% interest. Hence the unit trust you see below are partially funded by cash, ie 300k and partially …