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If you have $10,000 and you want to invest them, how would you allocate this capital among the following asset categories by percentage?

Please put a percentage number (%) next to each one of the following options:

A. Dividend paying stocks

B. Stocks without dividends

C. Mutual Funds

D. Gold

E. Silver

F. Commodities

G. Real Estate

H. Farm land

I. Dividends paying Sukuk (Islamic form of bonds)

J. Partnerships in small businesses

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Question added by Nuridin Islam Diab , Training Manager , Bbusinesss LLE
Date Posted: 2016/04/07
Aslam Kanowah
by Aslam Kanowah , Executive Director , AfrAsia Bank

Portfolio diversification will be ideally 10% in each investment. However it is to be noted that each of the listed assets are not a different category in itself e.g Gold and Silver are not 2 categories instead it will be considered as 1 category e.g Metals .Accordingly the percentage allocation can be varied porportionately based on each individual investor's preference, risk appetite and assets categorization.

Khalid Ghaffar
by Khalid Ghaffar , Consultant for Business Development , Waters Corporation USA

I will equally distributed into D, G and I .

Deleted user
by Deleted user

Diversification is very important, I will personally invest in long and short term investments so when i need cash i can liquidate faster. 

 

A. Dividend paying stocks (15%) short term investment 

B. Stocks without dividends (0%) 

C. Mutual Funds (10%) long term and retirement 

D. Gold (0%) 

E. Silver (0%) 

F. Commodities (15%) 

G. Real Estate (30%) long term investment 

H. Farm land (10%) 

I. Dividends paying Sukuk (Islamic form of bonds) (10%) 

J. Partnerships in small businesses (10%) 

Osama Alia
by Osama Alia , Freelance consultation (Financial Management, Banking) , Freelance CFO

There is no ideal distributions for investment. The percentages depends on the investor's preferences of risk and return and on investor's expectations of markets movements.

Deleted user
by Deleted user

Very useful question.

I agree to all experts.

Deleted user
by Deleted user

If you had the opportunity to invest small amounts in multiple investment opportunitiesI advise you to distribute the amount equal proportions of 10% for each elected chanceYou have achieve the lowest level of riskGet quick cash returns from Current investments Get capitalism benefits from long-term investmentsThe most important thing -Able to capture the performance of the ten market indicesMaking it easy that you make transfers between investment later moved  the capital to the markets that achieve better performance indicatorsOr invest additional funds in these markets

10 % FOR EACH

Saleem Raza
by Saleem Raza , TEAM LEADER TRADE SERVICES , Mashreq Bank psc

A,C,F,I preference to invest funds

Nuridin Islam Diab
by Nuridin Islam Diab , Training Manager , Bbusinesss LLE

If I had this amount of money to invest, I would not invest in all of them. Even though some of those choices could be grouped under similar categories from an asset perspective, but I would still make a differentiation when it comes to my investment choice. In general, I would not invest in any asset which doesn't produce cashflow (with the exception of Gold and Silver). The reason why I would invest in Gold and Silver, and not other "commodities" is that Gold and Sivler are considered an insurance against currency wars, devaluation of money and economic downturns or recession. When the value of paper money goes dramatically down, Gold and Silver still maintain their value and can be a useful hedge towards the lost of paper money value because they have an intrinsic value in them. Hence my choices would be as follows:

 

A. Dividend paying stocks (Cashflow producing asset)

D. Gold (No cashflow but insurance and hedge against economic recession)

E. Silver (No cashflow but insurance and hedge against economic recession)

G. Real Estate (Cashflow producing asset)

H. Farm land (Cashflow producing asset)

I. Dividends paying Sukuk (Islamic form of bonds) (Cashflow producing asset)

J. Partnerships in small businesses (Cashflow producing asset)

I would put 10% of my investment potforio in Gold and Silver (2.5% Gold and 7.5% Silver) and I would distribute the rest of the 90% as follows:

A. Dividend paying stocks (20%)

D. Gold (2.5%)

E. Silver (7.5)

G. Real Estate (20%)

H. Farm land (10%)

I. Dividends paying Sukuk (Islamic form of bonds) (30%)

J. Partnerships in small businesses (10%)

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