It has been a rollercoaster ride for global stock markets over the past few months, first tumbling into bear market territory before recovering somewhat even as the world continues to grapple with the coronavirus pandemic. Central banks have cut interest rates and rolled out massive stimulus to save companies and jobs amid a deepening economic downturn.
UOB Capital Builder is one solution that investors can tap to grow their money sustainably at a time of heightened market volatility and record low interest rates. With a focus on capital growth, it actively looks for opportunities across market cycles and helps investors manage risk and volatility through diversification across asset classes and markets globally.
“It can go anywhere,” he said, referring to the ability of the fund managers to pick from a variety of different asset classes — equities, bonds and commodities like gold — depending on the market cycles. “Investing is also about risk management. You can participate in the upside and also seek to minimise huge potential drawdowns,” Mr Lim stressed.
He thinks a passive investing approach that solely tracks market benchmarks might not be able to deliver the healthy returns that investors received in previous years, because of the deterioration in the global economic outlook. These institutional investors are armed with sophisticated big data analytics, combined with rigorous research, that they subsequently use to make investing and asset allocation decisions. And this is what investors can benefit from when they opt for this solution, he added.