FSM MAPS – Why global diversification matters more than ever

Tariffs, turmoil, and the importance of global diversification

Diversification is the only free lunch in finance - these are words to live by, especially in today’s unpredictable market environment. 

US equities, which had a relatively calm start to 2025, delivered a rude shock to investors as renewed tariffs and geopolitical tensions triggered sharp market swings and widespread uncertainty. April was undoubtedly one of the most volatile months of the year, with the S&P 500 Index plunging over 12% in just a few days following the announcement of Donald Trump’s “Liberation Day” tariffs.

Volatility remained high in the weeks that followed as chaotic policymaking continued to upend US equity markets. As of end May, US equities (measured by the S&P 500 Index) have fallen nearly 5% year-to-date. In contrast, other markets such as Europe and emerging markets fared much better, with Europe delivering returns of approximately 15% (Figure 1). Investors with concentrated exposure to US equities have likely experienced underperformance this year relative to more diversified portfolios.

Figure 1: US equities have had a rough start to the year

At times like these - when markets are driven by headlines and sentiment turns on a dime - diversification becomes an essential tool for managing risk and protecting your portfolio. 

How FSM MAPS can help you achieve your investment goals

Investors often associate diversification with the need to purchase multiple funds, which can be a nightmare for some given the amount of logistics involved. This is where a managed portfolio solution such as FSM MAPS can come in handy.

FSM MAPS is an online managed portfolio service that builds, monitors and rebalances your portfolio for you. It is a hassle-free investment solution designed to help investors achieve their financial goals through professional management, diversification, continuous monitoring, and discretionary adjustments based on market conditions. 

Our portfolios are globally diversified, helping to mitigate risk during periods of market stress (Figure 2). This approach provides greater stability across a range of economic conditions — including the current environment where a great deal of uncertainty exists.

Figure 2: Neutral allocation for equities and fixed income

With FSM MAPS, investors have the luxury of choosing between five different risk profiles — ranging from conservative to aggressive — to suit their individual risk tolerance. Additionally, the portfolios are available in either income or growth options, depending on whether you prefer to receive regular dividends or reinvest for long-term capital appreciation. 

Despite being a balanced portfolio (each of the five portfolios has varied exposure to fixed income), all of them managed to outperform major equity indices such as the S&P 500 or even the MSCI ACWI on a year-to-date basis, underscoring the merits of holding a global diversified portfolio (Figure 3). 

Figure 3: YTD performance comparison of MAPS vs the S&P 500 Index and MSCI ACWI 

Our MAPS portfolios are diversified not only across markets and sectors, but also across investment products. To strike an optimal balance between active and passive management, we employ a mix of unit trusts (UTs) and exchange-traded funds (ETFs). Product selection is guided by our focus lists—a curated collection of top-tier UTs and ETFs handpicked by our research team. These selections are reviewed regularly to ensure they remain aligned with current market opportunities and our investment strategy.

Investors can start with as little as SGD 500 for lump sum investments, while subsequent RSP investments are only SGD 100 per month. Management fees, which are deducted quarterly, are as low as 0.0875% for the Conservative portfolio and up to a maximum of 0.125% for the others, providing investors with a cost-effective way to achieve a globally diversified portfolio. 

Overall, MAPS offers a hands-free investment solution designed to grow your wealth—perfect for investors who want convenience without the stress of daily market monitoring. 

New to investing? MAPS provides an easy, reliable way to get started.

Join us for ETFestival 2025

Want to learn more about MAPS? Join us at Marina Bay Sands on July 5, 2025, for an exclusive in-person event! We'll share valuable insights on MAPS, and we'd love for you to be part of it. Click here to register now!

LOW FLAT FEE on ETF via FSMOne

FSMOne is the first in the industry to offer a low, flat fee for ETF investments. When you invest in US-listed ETFs through FSMOne, you’ll pay just a flat USD 3.80 processing fee—regardless of whether you invest $1,000 or $100,000.

Low flat fee of S$3.80 for SGX, US$3.80 for US exchanges, and HK$38 for HKEX

FSMOne ETF Regular Savings Plan

For investors who prefer a Dollar Cost Averaging approach, FSMOne’s ETF Regular Savings Plan (RSP) is a great option. Choose from over 250 ETFs—including the Invesco NASDAQ Internet ETF—and invest regularly with 0% processing fees. You can get started with as little as $50 a month.

Click here to learn more about our ETF Regular Savings Plan and explore the full list of available ETFs.

Open an FSMOne Account – It’s instant with just a few clicks

Click here to open your free account and start investing globally and profitably today.

Call us at +65 6557 2853 or send us an email to clienthelp@fundsupermart.com if you have encountered any difficulties in getting started.