With $500/mth, which is the best way to invest to get high returns?

Hi there,

There are many options available. You can either engage a financial advisor to utilise a variety of funds, opt for a robo advisor or DIY. DIY-ing can Involve doing an ETF. I'll assume you are looking at dollar cost averaging at a monthly allocation so these options are great.

Engaging a human financial advisor or robodvisor are similar as they allow you to opt for a diversified portfolio where you diversify across asset classes and regions. If you want a human touch alongside having more say in your portfolio construction, you can go with a human financial advisor. If you are comfortable with portfolios crafted by algorithms based on your risk tolerance, then you can go alongside a robo advisor.

If you are opting for an ETF, do note that they are usually equities So there is no fixed income related portion to hedge your portfolio. So do your own due diligence before choosing. ETFs track an index so they are highly diversified across industries. Do note that the huge drivers of ETFs this past Few years have been tech related companies so that gives an awareness of what you can focus on if youre Looking at growth (with high volatility of course).

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Hi anon, assuming you have considered the pointers discussed here and are ready to invest, you can look into investing via the robo advisors or regular shares savings plans with S$500 per month.

"High returns" is subjective. By investing regularly into an exchange-traded fund tracking the S&P 500 index, you could get around 10% per annum over the long-term. If you want higher returns, you could pick individual stocks but that requires knowledge about reading financial statements, etc.

Hope I could be of help to you. ​​​