What are the suggested mutual funds during this period?
This is one of the most common questions people asked me when they want to invest. Based on the current situation and the personal research and readings, the investment themes shall be as followed:-
- China related funds: China is a domestic demand driven economy, so the consumer spending is critical. In 2019, consumption accounted for 60% of China’s GDP growth. Many economic indicators are improving in China. The recovery has come without a dramatic stimulus. You can see that China is the first to recover from the lock down situation. In terms of valuation, it is relatively cheaper valuation (P/E) compared to countries.
- Technology related funds: During this period, the use of technology has increased due to social distancing measure. There is a change of shopping habit, leading to wider adoption of e-commerce. Refer to survey by DataTrek (Read more here), 70% of the respondents expect at least 5% upside for the technology stocks.
Look for me for consultation for the selected mutual funds for above.
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