facebookI'm 25 years old. I am new to everything. I do want to learn to invest. I've never done any. I have no idea where to start. Some friends told me to start with REIT. Can anyone guide me? - Seedly

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I'm 25 years old. I am new to everything. I do want to learn to invest. I've never done any. I have no idea where to start. Some friends told me to start with REIT. Can anyone guide me?

Discussion (9)

What are your thoughts?

There are definitely many financial products and vehicles to choose from for investing!

You can start with ETFs first for some passive and hands off investing.

Lin Yun Heng

Lin Yun Heng

02 Jul 2020

Senior Analyst at Delphi Digital

Did you ask your friend why start with REIT? Does your friend even know what REIT is? REIT is essentially investing into Real Estates managed by REIT managers and there are different types of REIT with differing characteristics. (can be a defensive stock or an aggressive stock)

REIT's primary purpose in a portfolio is for Income. It produces passive income for the investor on a quarterly or semi-annual basis. If your capital is minute (1k-5k), it will not be wise to fully invest into REITs since the dividend gains will be insignificant. Instead, you can look into Growth-based Stocks/ETFs for capital appreciation. (US stocks usually) Of course you can combine both Income +Growth. (As we are in our 20s, its more wise to tilt towards Growth during accumulation phase of our investments.)

To break it down, SG market is mostly for dividend play while US market is mostly for capital appreciation. Knowing the characteristics of different markets can help you understand how and why some stocks have differing growth rates/dividend yields.

For a start, I recommend you to get started with a roboadvisor (eg syfe, stashaway) if your capital is small. While you slowly DCA and invest in the robos, you can slowly build up your knowledge while staying invested. Starting with robo also ensure that you do not make rookie mistakes such as buying too little shares of stocks and incur high comission fee percentage or banking all your capital on one "Good" stock (eg DBS haha) or panic selling.

If you have any questions, do let me know and I'll be glad to answer more! Cheers​​​

Tan Wei Ming

Tan Wei Ming

02 Jul 2020

Founder and Writer at Frugal Youth Invests

The overview of my strategy to investing for Beginners will be as such.

Look at your own finances ...

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