26 Aug 2020
Hi! I'm looking to take out around $350-$400 of my salary to invest. Have read through a number of Seedly articles, but I'm still confused.
Does it make sense for me to diversify by buying STI ETF + Robo-Advisors (Global ETF)? What's the benefit of diversifying, if I'm looking to hold this for the next 5-10 years when according to what I read, there's generally an upward trend in terms of returns? (As compared to only buying STI or only Global ETF)
How should I decide the split?
26 Aug 2020
Student Ambassador 20/21 at Seedly
The purpose of diversifying is to eliminate as much as risk possible so that only market risk (risk that cannot be diversified away) remains.
With a budget of around $400, I would put it all in a robo advisor. Reason being is because i cannot ascertain how much risk i'm minimsing by getting both portfolios. On the other hand, if I use a robo adviser (Stashaway for example, which I use) I can be certain of the risk that I'm taking up through their portfolio's risk index. Do let me know if you need a referral code. Hope this helps!
Tan Yu Ji
13 Aug 2020
Economics at Nanyang Technological University
I would recommend not investing in the STI as the growth is too stagnant! If you only have $350-$400 every month to invest, just put it into a robo advisor and they will help you to diversify your portfolio!
12 Aug 2020
Banking & Finance at Singapore Polytechnic
Warren Buffett recommends retail investors to just invest 90% in S&P 500 and 10% in Short-Term US Govt Bonds. If your investment horizon is long (20+ years) don’t waste time (and money) investing in the STI
View 1 replies
Yeap yap, it is a good idea to diversify as the sti etf only focus on the top 30 companies in Singapore while robo- advisors will allow you to invest in stocks from all over the world via the different etfs.
Enter you example choices into Bigcharts charting online and look what came of STI versus SP500 (div...
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