Base on current situation that we are facing uncertainty, Please advise what is the best thing to do with a lump sum cash of SGD 50k?

What I think may be best for me, may not be best for you, because of the differing and varied knowledge we each possess.

Personally, I will put these in growth stocks - disruptive companies where its products will be the reality of the future.

If you are keen, for a start you can look into ETFs actively managed by ARK Invest.

Hi Anon,

Congratulations on your new investment journey. Starting out might seem daunting at the start but not to worry! Here at kristal.AI, we curate a variety of ETFs suitable for investors who are just starting out, which you may explore more here. There is also a robo-advisory function we offer to retail investors.

It is always advisable to look towards portfolios that diversify your holdings across different asset classes. Here at kristal.AI, we offer a few products which can suit those needs, whether these are managed portfolios that are following a determined asset allocation (All Weather), or rebalanced on a regular basis (Autopilot Kristals), or by use of our advisory algorithm at an individual client's portfolio.

In today's environment with Interest Rates near the zero boundary, the traditional balancing effect of a fixed income allocation is somewhat lower, and therefore many investors have increased allocation towards Gold and other precious metals.

While we normally favour the use of systematic investment plan (SIP-investing in a committed amount or # of shares at regular intervals) in times of heightened uncertainty, we also understand that many investors do not want to keep their money in idle cash balances.

Since you are looking towards advice for a lump sum investment. kristal.AI offers the "Systematic Withdrawal Plan" (SWP), which allows our clients to invest a lump sum in a conservative portfolio with a high allocation in low risk fixed income ETF (for example a US-Treasury short term bond ETF), but sell at regular intervals a defined number of units and rotate through a subsequent SIP into the traditional growth ETFs or deploy it towards Algo recommended higher risk portfolios. Check out how to find the best investments with our advisory algorithms here!

This will give investors some flexibility to navigate through these uncertain times whilst maintaining a clear path towards establishing a more growth-oriented portfolio, moving towards the future.

Hope this helps to answer your question! Feel free to sign up for an account at www.kristal.ai, it will take less than 3 minutes via MyInfo :)​​​

If you have this spare cash, and don't really know what to do, I will definitely advice you to first place it into a high interest rate account. It should be generating around 1 to 2% while you research and get comfortable with the idea of investing.

If you are new to investing, you can use the approach like what Jovan has previously mentioned, which is to dollar cost average into an investment vehicle like diversified managed portfolio or into a diversified ETF. This will form your passive investment strategy.

As you don't know if you are able to beat the market, you can probably allocate some funds into equities where you can choose some stocks. However, do keep it to a manageable position size so you can afford to take the risk.​​​

If you have little experience in investing, you should probably DCA the money into an ETF/roboadviser.

If you're going for an ETF, perhaps can keep part of the money in a high savings account and invest some monthly (or quarterly if u want reduce fees) over 2-4 years.

If you're thinking about robos, you can use the same tactic (can do it monthly since most dont have transaction fees). Or if you want more convenience, you can put it all in Stashaway Simple (no management fees, approx 1.4% interest pa) & set it up to auto transfer some to investments within Stashaway. This one depends whether (1) can find higher interest savings account, and (2) if you're comfortable with putting all of ur investment money in Stashaway.

Good luck! A spare 50k is a good problem to have :)