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How much should I invest through QuietGrowth?
You can invest all your savings for the long term in the QuietGrowth portfolios, as per the advice we provide you in our Statement of Advice (SOA), after you set aside the requisite money for a 'rainy-day fund'.
A rainy-day fund comprises term deposits, low-risk fixed-income instruments or cash. If the rainy-day fund comprises a modest portion of higher-risk equity exposure, those securities should be highly diversified. This rainy-day fund should cover at least six months of expenses to address unexpected emergencies (such as unemployment or illness) that may arise for you and your dependent family members. The rainy-day fund should also include six months of monthly payment commitments you might have towards mortgages, loans or insurance premiums.
That is, firstly, you should (a) set your rainy-day fund; and (b) get on course with your long-term investing goals by investing in risk-optimised portfolios such as those offered by QuietGrowth.
Additional information
Only thereafter should you start considering the remaining part of your wealth as play money. It is an optional 'discretionary fund', of a size that you are comfortable with, if you have the financial strength and appetite to easily withstand the loss of that entire amount in the worst-case scenario. You can use this discretionary fund to invest in risky opportunities you understand and believe in. Examples of such risky opportunities include a specific stock, a personal loan to a friend at a relatively high interest rate, or a friend's business venture.
Refer to our Investment Methodology page for more information.
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