4 Unforgettable Months – Diversification and Regular Investment Softened the Blow

I wrote about the painful brutal lessons that I learned from the last few months yesterday. Today, I like to share the benefits I got by having diversified my investment assets and doing regular investment monthly.

Many of my regular readers would know that I have an index portfolio. Although it is related to this subject, I will leave the review of my index portfolio to another day.

I like to share my investment experience in MoneyOwl, instead if interested to know more about Moneyowl you can click here: https://www.moneyowl.com.sg/

(Disclaimer: I don’t receive any advertising fees from Moneyowl. I use Moneyowl here as an example of diversified investment strategy)

Short Intro: MoneyOwl is a financial adviser and fund management company licensed by the MAS. It claims to be a Bionic Financial Adviser; a combination of humans and technology. It is a social enterprise and a joint venture between NTUC Enterprise Co-operative Limited and Providend Holding Private Limited.


I started a regular monthly investment plan with MoneyOwl in Jun 2019 with $100. Later on, with some familiarity and confidence in the platform and their investment strategy, I stepped up my investment quantum progressively by about $100-200 every month. So, compared to the earlier months, I have invested more money in the last few months.

person holding blue ballpoint pen on white notebook
Photo by Lukas on Pexels.com

From Jun-2019 to April-2020, I have handed over a total of $6900 to them.

Back in May 2019, Moneyowl had done an assessment of my risk tolerance and then it recommended a balanced portfolio which means an investment strategy as follows.

  • 60% in Equities (out of which 52.8% in Developed Market and 7.2% in Emerging Market) and
  • 40% in Fixed Income (A to AAA rated Bonds)


Despite the upheavals in the stock markets that we saw in the last 2 months and the fact that I had invested more money in the latter months, my balanced portfolio was recorded to have declined only 1.66%.

In contrast, as of last Friday, S&P500 has declined 15% from the peak in Feb and STI was -18%. The difference is too stark to ignore.


The breakdown of my balanced portfolio is as follows:


I felt that this experience showed me the benefits of diversification and regular monthly investment in a market downturn scenario.

I fully appreciate that when the market starts to rally again, my balanced portfolio will underperform the equity indices. But hey, we can’t have the cake and eat it.


To me and at this stage of my life, preservation of capital is most important to me.

I don’t aspire for extraordinary profit – as many of you know, my aim is to get 5% yield from my portfolio year in year out.

One thing to note though is that platforms like MoneyOwl do charge a fees for managing the regular investment and portfolio. In my case, they charge me 1.17% per annum and they are quite transparent about it – see below


If you prefer to DIY and not paying someone to do this for you, it is definitely doable and we can discuss this in another blog when I share a review of my index portfolio.


So, you may think why I still do this with MoneyOwl (paying someone to do so) – the reason is because it enforces discipline in me and ensure that I would stay invested regularly regardless of the market conditions. Furthermore, I cannot be monitoring the market so closely, I still have a regular job that I need to secure.

The fact that it takes away the emotional aspect helps a lot!

If you are like me who lack strict discipline and emotional steeliness when it comes to investment, a monthly investment plan may be useful for you to accumulate wealth and ensure you are always in the market through ups and downs.

Hope you find this useful.

With regards,


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