{"id":55400,"date":"2023-01-20T18:41:58","date_gmt":"2023-01-20T10:41:58","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=55400"},"modified":"2024-02-06T11:57:40","modified_gmt":"2024-02-06T03:57:40","slug":"long-term-investors-with-principal","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/long-term-investors-with-principal","title":{"rendered":"Will The Year Of The Rabbit Be The Turning Point For The Long-Term Investor?"},"content":{"rendered":"

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As an investor stepping into 2023, there are a lot of reasons to be cautious this year.<\/p>\n

The market outlook may look grim to investors this new year, from ongoing geo-political conflicts<\/a> to global markets facing economic instability (since the 2008 financial crisis)<\/a>.<\/p>\n

However, it\u2019s not all doom and gloom, as we are starting to see turning points that can help investors re-strategize their investments in 2023. Remember: Think long-term.<\/p>\n

Here are some things to look out for in 2023 to ensure you\u2019re investing the right way.<\/p>\n

<\/span>A better economic outlook in Asia<\/span><\/h2>\n

After the economic headwinds of the global markets in 2022<\/a>, emerging markets in Asia will set the stage by joining hands with China, and ASEAN<\/a> is playing a big role in establishing long-term positive growth.<\/p>\n

The great reopening of China<\/h3>\n

China\u2019s strict \u201czero-covid<\/a>\u201d policy has strained the global economy due to the constant lockdowns and supply chain issues. However, now that the country is slowly opening up its borders<\/a> and loosening restrictions, there is hope for economic recovery within the Asia region.<\/p>\n

As China relaxes its Covid-related restrictions and reopens its borders, oil prices will potentially rise due to increasing demand for fuel<\/a>. The re-opening of China’s borders will also contribute to its economic rebound – paving the way for reputable businesses<\/a>, whether local or foreign, to bring their investments into the country.<\/p>\n

The reopening of China will contribute to the dynamics of the global economy while adding to the attractiveness of Asia due to its geographic proximity<\/a>. For investors who may not want to focus solely on China\u2019s potential, the ASEAN region can be a choice pick for both equities and fixed-income markets.<\/p>\n

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ASEAN continues to grow in 2023<\/h3>\n

While China\u2019s steady progression towards growth could have a positive effect on Asia and the rest of the world<\/a>, the ASEAN region continues its path to becoming one of the fastest-growing regions for investors in 2023<\/a>.<\/p>\n

One of the reasons why is through Foreign Direct Investments (FDI) where countries such as Malaysia, Singapore, Thailand, Indonesia, and Vietnam are becoming attractive destinations for companies to invest into.<\/p>\n

And FDI will play a huge role in driving economic growth within the region whereby IMF projects that the economy will grow by 6% in 2023<\/a>, outpacing the projected global GDP growth rates. And ASEAN is poised to benefit tremendously from the US-China<\/a> tensions as companies might seek to move their supply chain out of China.<\/p>\n

Other factors such as the US moderating inflation<\/a> and the US Fed<\/a> potentially downshifting the magnitude of hikes, shows signs of an improving economy which can have positive effects on ASEAN\u2019s continued growth.<\/p>\n

Patience and strategy are key in 2023 for the investor<\/h3>\n

Principal Malaysia believes that there are silver linings that lie ahead for long-term investors despite the volatile outlook<\/a>.<\/p>\n

The key focus based on their analysis is to be more defensive and to stay invested for the long run with the right investment strategy.<\/p>\n

Depending on how risk-averse you are and how much growth you hope to achieve, you can approach investing in three ways:<\/p>\n

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  1. Low-risk exposure\/risk-averse<\/strong>: For investors who seek defensive investment strategies, safer options include fixed-income funds such as bonds or money market funds, particularly during challenging economic conditions. You can consider Principal’s Principal Lifetime Bond<\/a> or Principal Islamic Money Market Fund<\/a> to outride the market volatility.<\/li>\n
  2. Moderate risk exposure\/moderately aggressive:<\/strong> If you\u2019re looking for a combination of growth and income, or can handle a more moderate risk exposure, you can explore Principal Asia Pacific Dynamic Mix Asset Fund<\/a> which provides exposure to Asia and income across the region as it is a fund with a combination of equities and fixed income exposure within Asia pacific.<\/li>\n
  3. High-risk exposure\/aggressive:<\/strong> For investors with a higher risk appetite, China offers good investment prospects currently as the valuations are cheap<\/a>, as the government pushes to reflate its economy<\/a> when the global market is starting to slow down. Principal offers exposure to this high-potential market with the Principal Greater China Equity Fund<\/a>. For investors that want diversified exposure, Asia and ASEAN can also be a choice of pick e.g. Principal Asia Pacific Dynamic Income Fund<\/a> and ASEAN Dynamic Fund, the flagship fund for Asia and ASEAN.<\/li>\n<\/ol>\n

    You can get more fund details below with a risk scale ranging from conservative to aggressive:<\/p>\n

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    Source: Lipper as of 31 Dec 2022<\/p>\n

    It is important to remember that time in the market is more important than timing the market. Keep on investing and think for the long-term.<\/p>\n

    If you\u2019re undecided\/still figuring out your goals and risk tolerance, you may consider starting with fixed-income funds to preserve your capital and generate some income.<\/p>\n

    <\/span>Double your prosperity with Principal<\/span><\/h2>\n

    Taking a more strategic approach and staying invested for the long run is its own rewards and earn double your rewards this lunar year!<\/p>\n

    From 16th January until 14th February 2023, Principal is offering a 0% sales charge<\/strong>. You can earn Double Prosperity rewards<\/a> when you invest online with Principal using cash or EPF savings when you use the offer code \u201c0.88percent\u201d.<\/p>\n

    What are the rewards?<\/p>\n