Much like when building a career or successfully running a business, it is important when taking care of one’s investments to know that there are different investment strategies best suited to each stage of life.

And at any age, you can learn more about the securities market in Cambodia by subscribing to the Telegram channels of the Securities and Exchange Regulator of Cambodia (SERC) and Cambodia Securities Exchange (CSX), and by following their Facebook pages.

As the proverb goes – “The best time to plant a tree was 20 years ago, and the second best time is now.”

So here we look at some age-appropriate investment strategies for the securities market.

Between 20 and 30 years old

This is when you are perhaps just starting out on your career and earning your first steady monthly income.

It is a good time to start saving and investing 10 per cent of your income in well-regulated financial products.

Securities are a good option for those with less capital looking to gain from the sector’s many benefits, and in your 20s you should focus on investing in growth assets.

By getting started early, and practising consistently while investing carefully, you can reasonably expect to enjoy a more stress-free financial life in the future.

Begin investing early and you will have enough time to learn about and fully understand investment opportunities and options.

You will also have more time to adjust investment strategies as you learn from success and failure.

Investment diversification:

Stocks: 80-90 per cent.

Bonds: 10-20 per cent.

Between 31 and 40 years old

This is the stage at which you are generally earning a better income and have more financial responsibilities.

It is a good time to start building a stronger and more stable financial status. You should also start planning for retirement in this stage. A good way to do this is to start saving 20 per cent of your total income and invest it in a diversified portfolio of stocks and bonds

When you are in your 30s, you can still afford to take on some risk, but you should start to gradually reduce your risk exposure as you get closer to retirement age.

Investments diversification:

Stocks: 70-80 per cent.

Bonds: 20-30 per cent.

Between 41 and 50 years old

At this stage, you have more experience and moderate-to-high wealth, and are likely reaching peak income.

This stage should be used for serious portfolio-building if your investments are already in good shape.

You should start investing more in securities products to maximise returns and hedge against risk.

If you have yet to start preparing properly for retirement, now is the time to get serious. You can still catch up if you’re careful, but there is no time to delay.

Meet with a financial adviser and/or investment adviser licensed by the SERC if you’re unsure about which investments to choose.

There are also the many training and other workshops regularly organised by CSX to take part in.

Investment diversification:

Stocks: 60-70 per cent.

Bonds: 30-40 per cent.

Between 51 and 69 years old

This is the stage where you are nearing retirement and should start to focus on preserving your wealth.

You should continue to invest, but with the focus shifted to low-risk alternatives,such as bonds and dividend-paying stocks.

You can also purchase pension or insurance plans that will provide you with benefits after retirement.

Investment diversification:

Stocks: 50-60 per cent.

Bonds: 40-50 per cent.

It is important to remember that these are just general guidelines – your specific investment needs will depend on your individual circumstances.

You should always consult a financial adviser and/or investment adviser licensed by the SERC for personalised advice.

Disclaimer: This article has been compiled solely for informative and educational purposes. It is not intended to offer any recommendations or as investment advice. The SERC is not liable for any losses or damages caused by using it in such a way.


Prepared by: Securities and Exchange Regulator of Cambodia

Department: Research, Training, Securities Market Development, and International Relations;

Email: [email protected];

Phone: 023 885 611.