Equities for Conservative Investors

Equities are a risky asset class.

Equity investments are made on a Medium-Term Outlook basis.

Medium term investments are investments at attractive relative valuations with favorable outlook for next 6-12 months. The investment case for these needs to be reviewed on a monthly basis for next 6 month period. Hence more careful monitoring is required than strategic investments. Such investments are suitable for shorter term investment goals but may be used for longer term goals like retirement planning as well, with more careful monitoring.

Sector Focus: Blue-Chips

We will focus on blue-chip household names which all investors are familiar with. They have a well-established track-record, strong management team, demonstrated competitive advantages and dominant market positions, which are likely to sustain into the medium-term to long-term. Equities are a growth investment. Market rewards companies that demonstrate growth in earnings and dividends.

We screen the universe of Blue-Chip equities for strong companies that have attractive growth-adjusted valuations. We avoid companies that have heavily debt-laden balance sheets. We like companies generating attractive free-cash-flows. We only select companies that pay dividends, with the exception of Alphabet [parent of Google].

Details about these companies can be found on their corporate website investor relations section. Please refer their annual reports and Equity prospectus.

Below is our current list of safer companies and ETFs, for Conservative Investors:

conservative equities presentation list 7 apr 16