What are the best investment options for beginners ?

I heard of robo-advisors but i am unsure if it is the best stepping stone for investment, and i have friends who are investing with crypto currency, while some are investing in stocks, but i do feel that they are just trying their luck. What’s your advice?

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Daniel Kok

10 Jan 2021

SYFE and stashaway. Have someone manage your portfolio for you until you're confident enough to pick your own.

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Chris

10 Jan 2021

Owner and Writer at Tortoisemoney.com

I think a good way that many beginners can start, is by considering Index Investing, also known as passive investing. Essentially, you invest in an investment vehicle such as an ETF, which tracks a specific index, in the belief that the market in general trends upwards (due to increasing productivity).

An index is a basket of stocks, that generally is used to represent an economy or a sector. In Singapore, we have the STI, and the US has the S&P500, Nasdaq 100 and Dow Jones. As such, when we invest into an index, the value of our investment increases as the stocks in the index move up which consequently causes the index to move up with it. Historically, the S&P 500 has returned about 9.8% per annum since the 1920s.

For starters, if you're young, looking to accumulate wealth, an S&P 500 ETF (E.g. CSPX, VOO or IVV) or a World Index ETF (IWDA, VEU) is a good place to start.

For more info on index investing, check out this post I wrote!

Also, if you're not certain which broker you want to use, you can check out a comparison of some of your options!

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