Why is Constructing a Portfolio Important?

Having a portfolio reduces the likelihood that a single asset’s underperformance will drag down your overall portfolio performance, as it may be less correlated with other assets in the portfolio.

A strong and resilient portfolio reflects your investment objectives and risk appetite.

Enables you to take a long-term view in investing. At the same time, you can rebalance your portfolio (i.e. buy or sell some securities in your portfolio) to capture short-term opportunities that arise from market volatility.

DBS's Chief Investment Officer, Hou Wey Fook, believes that the Core-Satellite Approach is the best approach for portfolio building.

 

What is the Core-Satellite Approach?

At DBS, our Chief Investment Office (CIO) adopts a core-satellite investment approach.

The “core” makes up the heart of the portfolio, and is:

  • Multi-asset to decrease overall volatility
  • Global to get best-in-class assets
  • Long-term because timing the market is difficult

The “satellite” portion complements the “core”, and is:

  • Inclusive of technical and tactical factors
  • Short-to-medium-term
  • Opportunistic so that you can take advantage of trending themes and sectors to sweeten returns
 
 

How to Get Started

Explore more

Thank you. Your feedback will help us serve you better.

Was this information useful?

That's great to hear. Anything you'd like to add?
We're sorry to hear that. How can we do better?
Enter only letters, numbers or @!$&-/()',.