UT Structuring 101

I received a call from a fren today asking me if i could help structure a portfolio for his client. As i have not met or spoken to this client of his, i will not be able to give any advice. Hope this fren understands my position. :)

Anyway, it is quite simple to structure a portfolio when you have the financial objectives of your clients:

1. Find out his current investment status (Any holdings in Stocks, UT, ILP or FDs)
2. Map out the investment horizon
3. Identify his preference in a particular investment (if any)
4. Evaulate his risk adversity (risk profiling)
5. Establish his required rate of return (e.g. better than FD rates)
6. Seek out UT funds that meets his risk-appetite & returns requirement

Though the above steps are not exhausive, it should be quite easy to start structuring some basic portfolio with the following "Rule of Thumb":

Conservative risk investor: 100pts
Medium risk investor: 110pts
High risk Investor:120pts

e.g. Medium risk investor aged 55 years => 110 - 55 = 55% Equity, 45% Bonds
e.g. High risk investor aged 30 years => 120 - 30 = 90% Equity, 10% Bonds

DISCLAIMER: This is not an inducement to buy or sell. You should do your own analysis on top of my postings. Pls seek professional help if necessary.