Why Did I Choose LionGlobal Infinity US 500 Stock Index Fund?

Last week, I wrote about my initial SGD 2,000 investment from CPF Ordinary Account through the Endowus digital platform. There is a long list of funds that is available in Endowus. You might be wondering why did I settle for LionGlobal Infinity US 500 Stock Index Fund. By the way, the amount in the screenshot is higher than the initial amount of SGD 2,000 as it includes the profit to date.

The truth is the decision-making process may not be as complex as you think it is. As the primary objective of writing this personal finance blog is to assist new investors in their learning, I will keep the explanations clear and straightforward. I do hope we can all one day be a community of highly sophisticated investors.

Investment Objective

Before I decided to open an account with Endowus, I have already had a specific investment objective in mind. I was looking for an index fund that I can invest in by using the CPF fund. There are many stock market indices. I wanted a fund that tracks S&P 500 index.

When it comes to my CPF investment, I would like the risk to be manageable. After all, it has been by default giving me 2.5% interest per annum. If you have heard about Warren Buffett before, it is always good to remember his two rules of investing. Rule No 1: Never lose money. Rule No 2: Never forget Rule No 1.

Investment Strategy

I’ll continue to make assumptions that none of you has any prior background in financial markets. I will therefore explain the investment approaches in the easiest possible manner. We shall all learn and progress at a comfortable pace.

In general, there are two ways to approach the financial markets. You can either adopt an active or passive investment strategy.

A passive investment strategy means you are aiming to mirror the performance of a specific stock index. In other words, you are trying to achieve an ‘average’ return.

An active investment strategy aims to ‘beat’ the market. That means you are trying to perform above the average.

While I take more risk to invest my cash through an active strategy, I have decided to opt for a passive approach for the CPF fund. Based on my understanding, there are only two funds that meet the objectives mentioned above in Endowus. LionGlobal Infinity US 500 Stock Index fund is one of them. The other fund is not tracking S&P 500. Therefore, the choice seems obvious.

I look forward to more coming onboard

The above is what I wish to share this week. I decided to enter the financial markets 15 years ago while I was still studying at NTU. As far as finances are concerned, that is one of the best decisions I have ever made. I’m 39 years old this year and will be entering a new decade next year, i.e. my 40s. I hope that if you are now in your 20s or 30s, you will start investing early. The compounding effect takes time.

It is also of utmost importance that you stay through the course. Many new investors make a grave mistake by quitting what they have started. Most of the time is because they have no one who can guide them in their investing journey. I did not have anyone to take as a reference as well back then. I know how it feels. It is not possible to share 15 years of investing experience overnight. However, I promise to keep posting regularly every Friday, 6 pm. You can then read it after work and before your Friday night outings or during the lazy weekend if you prefer.

It’s not all about making money

I used to be obsessed with making money in my 20s and a large part of my 30s. However, I learnt that life does not just revolve around money. We need to spend time cultivating other aspects of our life too. While I have lost that “It’s Friday!” feeling since I left corporate life to pursue the life of a freelance accountant, I still love my Friday evenings and weekends. It is when I see things slow down and people are enjoying their social and family life.

For me, I went to Upper Seletar Reservoir last weekend. It’s indeed a relaxing place to visit on the weekend. It reminds you how wonderful life is. Therefore, we should not take things for granted and treasure all that we have.

Happy Friday, people! See you next Friday at 6 pm! 🙂

Yanto Wong