6% Annual Yield

[Mecisteus]

Since when will there be 6% yield risk-free? Everyone would have gone in already. You won't be the first, or the last.

Such high returns are possible, but unlikely to be shared openly. You need to do some work to find it. It won't be on this forums.

Anyone who says they can make high returns risk-free is lying through their teeth.

You may not be around to know this famous low risk and high returns investor from MM.

https://forums.hardwarezone.com.sg/stocks-shares-indices-92/[gpgt]low-risk-high-return-4785309.html

 

[OngHuatHuat]

It is not risk free, you read my question carefully, I need certain strategies to consistently beating 6 % without loss of capital in any period, because I am going to use that strategies for my current and any future earnings to meet my goal.

I have something in mind which I have already shared, but that is not considered as risk free because there is foreign currency risk.

I hope someone who successfully did it before shared it with us, how he manage to do it?

Since when will there be 6% yield risk-free? Everyone would have gone in already. You won't be the first, or the last.

Such high returns are possible, but unlikely to be shared openly. You need to do some work to find it. It won't be on this forums.

Anyone who says they can make high returns risk-free is lying through their teeth.

 

[flambe]

How difficult is it to have consistent 6% yield for years without loss of capital? Any strategies?


Some REITs/Business Trust may offer high yield but for certain counters, share price keep dropping.


How about the use of overseas investments? Like those denominated in Ringgit or HKD or USD?

buy hyflux bonds at 6%

 

[OngHuatHuat]

I believe people who initially invested in hyflux bonds weren’t aware of the huge risk involved.

buy hyflux bonds at 6%

 

[tangent314]

6% risk free product doesn't exist, simple as that. Either accept lower yield or higher risk.

 

[OngHuatHuat]

Of course all products carry certain degree of risk, but what I am interested at is how that person protects his capital in the event of financial crisis.

6% risk free product doesn't exist, simple as that. Either accept lower yield or higher risk.

 

[crimsontactics]

6% risk free product doesn't exist, simple as that. Either accept lower yield or higher risk.

CPF first $30k at 55 and above is risk-free 6%.

Sent from . using GAGT

 

[OngHuatHuat]

Yes but that is not available to anyone, I still have around 21 years to reach 55 years old.

Furthermore, this is only for the first 30 k.

CPF first $30k at 55 and above is risk-free 6%.

Sent from . using GAGT

 

[Mecisteus]

Of course all products carry certain degree of risk, but what I am interested at is how that person protects his capital in the event of financial crisis.

Very simple.

Just sell everything before a market crash.

 

[OngHuatHuat]

This is what I did last year, but that requires a strong will to sell all.

Very simple.

Just sell everything before a market crash.

 

[Mecisteus]

This is what I did last year, but that requires a strong will to sell all.

Just repeat this strategy.

Oh don't forget to buy back at the bottom.

Otherwise, you may end up buying back at higher prices.

 

[BBCWatcher]

I believe people who initially invested in hyflux bonds weren’t aware of the huge risk involved.

A perpetual with a 6% coupon and a non-retail minimum wasn't clear enough?

 

[limster]

when it comes to talking about retail bond there seem to be 3 categories:

(1) those who happily buy any retail bond and can't tell the difference between them,
(2) those that scared to buy any retail bond.
(3) those that are able to see the different risk-reward profiles presented by each bond, and willing to buy those they feel have better profile than the others, as long as consistent with their own risk profile.

Myself, I did my own assessment, and found the risk-reward ratio for Perennial 4.65% 3-year bond to be perfectly acceptable and happily counted the coupons for 3 years before it matured last year.

As the Perennial was close to maturing, I studied the Astrea IV 4.35% offering (rated "Asf") and also found the risk-reward ratio perfectly acceptable so I press for as much as possible. Of course there are some that are too scared to buy... and who knows, they may be right and Astrea IV could default despite people currently willing to pay 1.066 on the dollar for it

 

[flambe]

need a good war chest man

 

[OngHuatHuat]

The price hasn’t recovered to the same level since then and I have achieved 2 main objectives using the cash out.

Hard to repeat because I was buying at a much lower level in year 2016.

Just repeat this strategy.

Oh don't forget to buy back at the bottom.

Otherwise, you may end up buying back at higher prices.

 

[OngHuatHuat]

People were rushing to press when this bond was launched.

A perpetual with a 6% coupon and a non-retail minimum wasn't clear enough?

 

[3dfxplayer]

I have been vested in First State Bridge for 10 years, this is a balanced unit trusts that holds 50% equities and 50% bonds. I have already mentioned a few times that I am a big fan of this particular fund manager and he has delivered the goods

If you recall, STI annualised returns for 10 years is 9.2%
First State Bridge annualised returns for 10 years is 9.24% with lower volatility due to its 50% bond component... and you can reinvest the dividends automatically for free whereas ES3 you must pay expensive brokerage fees to reinvest?

Max drawdown is less than 6% so those are indeed very nice risk adjusted returns.

 

[BBCWatcher]

People were rushing to press when this bond was launched.

Then they were... well, they were not smart (and didn't even have any brain waves?) if they didn't understand they were assuming significant risk.

A perpetual is particularly "amusing."

 

[EricDraven]

How about SGD quasi-sovereign bonds like the recently IPO'd ST Telemedia 5% perps? It's wholly-owned by Temasek and offers 5% vs parent at only 2.7% (Temasek's 5-yr bond launched last year). Not 6%, but good return at minimal risk?

 

[SKenny]

How about SGD quasi-sovereign bonds like the recently IPO'd ST Telemedia 5% perps? It's wholly-owned by Temasek and offers 5% vs parent at only 2.7% (Temasek's 5-yr bond launched last year). Not 6%, but good return at minimal risk?

Temasek has been making some "less than ideal" investment lately. They have majority ownership of some "risky" companies. For example they own more than 50% of Olam having bailed them out recently.

There was some unfavorable news about STT's subsidiary (GDS) in the US recently which led to short-selling. Overall I think STT is still fine but their industry is facing strong head wind.