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Analysts tout aggressive investments

Individual investors should take more aggressive attitudes in managing their portfolios amid the global trend toward rising interest rates, investment analysts said yesterday.

"As the world's economic climate is becoming inflationary at the moment, people can take a more aggressive stance in arranging their portfolios," said Gary Chou (周長發), senior manager of asset management with the First Commercial Bank (第一銀行), the banking arm of First Financial Holding Co (第一 金控), the nation's third-largest financial holding company.

Individual investors could evenly balance their investments between bonds and stocks, as opposed to the previously recommended conservative ratio of 7 to 3, to protect their investment value from shrinking while interest rates are on the rise, Chou said.

The central bank lifted the benchmark interest rate by 0.25 percentage points last month. The decision came after the US Federal Reserve raised its key federal funds interest rate in three increments this year to 1.75 percent.

Another investment consultant said that investors could see a decent return in stock markets by the end of the year as a result of the economic recovery.

"People who are pursuing higher yields could put their funds in the emerging stock markets in Asian countries, including Taiwan and South Korea," said Rosaline Hsu (徐佩琳), deputy manager of financial services with Fubon Commercial Bank (富邦銀行), a subsidiary of Taiwan's fifth-largest financial holding firm, Fubon Financial Holding Co (富邦金控).

Government bonds are not a good choice, Hsu said, as they have lower risks but are more subject to the influence of interest rate hikes.

High-yield funds investing in corporate bonds could offer a better option, she said.

Prudential Financial Securities Investment Trust Enterprises suggested that more conservative investors take advantage of regular investment plans.
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