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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 small portion of higher-risk equity exposure, then such instruments should be highly-diversified. It should cover at least six months of expenses to deal with any unexpected emergencies (such as unemployment, illness) that might arise in your life as well as in your dependent family members' lives. The rainy-day fund would also include six-month's worth of any monthly payment commitments that you might be having towards mortgages, loans or insurance premiums.

That is, firstly, you should (a) set your rainy-day fund; and (b) become on course with your long-term investing goals by investing in risk-optimised portfolios such as those offered by QuietGrowth.

Only thereafter you should 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. The amount in this discretionary fund can go towards investing in risky opportunities in which you personally believe and understand. Examples of such risky opportunities include a specific stock, a personal loan for a relatively-higher interest to a friend, or a business venture of your friend.

Refer to our Investment Methodology page for more information.

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