I haven't been doing this for a really long time since my son was born and turned a month's old.
Some of you might remember that I had used some of the "angbao" money given to him back then to purchase some stocks in the market for the long term. My wife and I topped up the majority of the part of course. You can view the original article here.
Our idea back then was to instill a habit and teach him the importance of investing from young which we will be grooming him as he gets older. Since it is evident that his time horizon is longer than us and it is his money that we are helping to invest, we think that it makes sense that the investment is made towards a blue chip stock. After all, when he gets older and started to understand basic things about investing, it's probably more prudent to start with blue chips than small caps. At least, when things get tough, we have a powerful backing behind some of these selected blue chips.
Anyway, my son just turned 1 year old this month and I decide to do the same for him to make this a regular annual exercise. Combining all his "angbao" received from his grandparents and family members, we decide to top up the rest by purchasing another lot of ST Engineering.
Child Portfolio
No. | Counters | No. of Shares | Market Price (SGD) | Total Value (SGD) based on market price | Allocation % |
1. | ST Engineering | 3,000 | 3.58 | 10,740.00 | 100.0% |
The "purchase" was rather unique because it actually didn't quite involved purchasing from the open market. The move was made by transferring one lot of what I currently have in my portfolio to his. As a result of this move, I now own a lot lesser than what I had previously had in my current portfolio. The reason why I chose it this way is because I want to have more cash available in hand, which has now increased to above the 42% level.
In any case, I'll update the portfolio for the purpose of my own tracking for now and the future.
