23 August 2021, Portfolio reshuffling (Where and why)


China has been one of the fastest growing economy and have had strong economy growth in the past 2 decades and I have recently started investing into it through an index (2801). It has been in the negative (red) zone (-9.43%) thus far, and you can see from the chart below that the current price as of 23 August 2021 is $28. (The peak was $41 on 18 Feb 2021)

The reason why I chose to invest in an index like 2801 instead of individually buying stocks such as Alibaba, Baidu and Xiaomi is because I want a more passive/diversified approach when it comes to stocks, and I simply don’t have the time to individually study them because of other commitments. Another reason why I chose 2801 is because it is not domiciled in the United States hence your dividends will be not taxed! *Do note that US domiciled stocks have 30% withholding dividend tax*

Stricter regulations have caused the dip but instead of being flustered, I see this as a good opportunity to buy in more and get more exposure to it because I truly believe in the fundamentals (Just look at Baidu, Tencent, Alibaba) and I believe that prices will eventually be corrected.

The key now is to be patient and get more exposure to it because such an opportunity may never come again. Stay firm and the market will eventually reward you well. My investing horizon for this index would be anywhere from 20 to 30 years so within this period, I will just continue to dollar cost average (DCA) into it and the DCA amount would vary depending on the price.

Thank you for reading this short post of mine! Stay safe.

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