Which types of investments are safe, and able to provide returns of more than 5% pa?

Guaranteed investments that yield 5%? The only one I can think of is CPF SA and for first 60k combined with OA (do correct me if I'm wrong).

All forms of investments carry some degree of risk, including risk of complete capital loss.

Semi safe instruments, provided you can stomach some risk would be strong s-reits. But finding a good entry point would be a challenge now due to the strong run in prices most s-reits have achieved this year.

If you have a stronger stomach for risk, manage an options portfolio by selling puts and generate returns of 30-40% pa. Not guaranteed, but achievable.

The definition of safe depends on your time horizon. I don't think anyone would dare to say any investment will perpetually give you 5% p.a.

But if you look at Long term returns of the markets, they do achieve 5% p.a.

Reits and some income funds do pay around that rate too.

However, you should always be prepared to hold should the price of the equity drop. the returns im walking about can be the 20 year average return of the S&P500 Or the income funds (Unit trust).

There is nothing considered safe in this world!

I was seeing some websites that help SMEs raise funds. Some of them offer 5% but you need to know your downside if they are unable to return.

Alternatively, to get a peace of mind, put your money in CPF or fixed deposits.

Hi Sean,

The term of 'safe' is slightly different for different people based on risk aversity.

There are many investment tools out there:

1) Value investing, technical trading

2) Options and futures

3) Property investing

4) Bonds investing

You have to know what is your risk tolerance level before adopting any of these!