With the market currently focused on artificial intelligence stocks, total returns in that space have been markedly higher. A diversified portfolio can capture returns across different sectors, said Mr Cheng.

“While the idea of cashflow from your investment portfolio is enticing, do remember that cash dividends are paid out of the cash from a company’s balance sheet, correspondingly reducing the share price of the company directly,” he said.

With index funds and zero-fee investment platforms now available, retail investors can more easily convert total returns into cash streams without relying on dividend payments, he added. Income assets such as REITs and bond funds remain sensitive to interest rate fluctuations.

“Investors who…