Commenting on Treasury bills (T-bills) losing steam, SMU Assistant Professor of Finance (Education) Aurobindo Ghosh suggested considering a mix of equities and bonds that matches their risk appetite, including low-cost, passive investments such as exchange-traded funds. He noted that many investors perceive equity investing as similar to gambling, while assuming assets earning around 2% annually are sufficient when long-term inflation is at or above that level. For younger investors with limited equity exposure, Asst Prof Ghosh recommended starting with a diversified passive equity portfolio, such as an exchange-traded fund tracking a broad global index. Direct stock-picking may be more appropriate for experienced investors. He added that equal weighting on broad-based asset classes like stocks, bonds and government securities might not be a bad idea, but these are not investment recommendations and individuals should seek professional advice based on their circumstances.
