Asked on 09 Jan 2020
I earned some money from a startup of mine which ceased to exist 2 years ago. My current level of income is near zero (I'm studying in uni) except for a few hundred bucks each month from a small business of mine. (I stopped taking allowance from my parents quite some time back)
I have a medium risk appetite and am willing to put in the time and effort to learn about the stocks market. I'm open to low-risk ETFs as well that I can stash my money in and focus on my studies and personal life.
I am in almost the same situation as you so I can totally understand. Maybe I'll tell you what I'm doing right now rather than recommend, and you can see if it's what you are interested in. For me right now I am exploring a few options with different percentages of my money in each.
First is Stashaway (which I find quite easy to use). They have simple SGD which works like a bank account, and a few investment portfolios. If you have no immediate goals then you can use the general investment portfolio which I am using. I just started and wanted to test the platform out so I placed $1k in there. So far the growth has been quite good but as this is an investment portfolio, the numbers fluctuate (please know that you can't keep expecting the numbers to go up).
Second platform I'm using is called Funding Societies. It is a peer to peer lending platform where you loan money to SMEs at a certain percentage. There are different types of loans like property backed, Revolving Facility but for me the most 'low risk' is invoice-backed loans (which means that business already has a proof of invoice and money coming in when project is completed but need the funds right now to run the project). For FundSoc the minimum is $20 to back each project so the barrier to entry is very low. They also have about 6-8 loans a day which I find is sufficient. Of course, it is up to you to read each factsheet and see if they are business you want to back.
If the company defaults you have the chance to lose your capital (but its not bad if you diversify across and only put $20 in each project). They have an auto-invest bot which allows you to set the parameters and will help you automatically allocate for certain loans that meet your criteria.
Third platform I'm using is also a peer to peer called SeedIn. I went in because I saw that they had 0% default rate so far so I believe they screen much more but of course past performance is not an indication of future performance. The entry requirement is also $1k for each loan which is pretty high but they do offer 8-10% returns per loan. However, amount of loans is much less than FundSoc, only about 1-2 per month.
In general I tried the P2P lending platforms because I felt that they were less volatile than investments. So far I had not encountered any issues or defaults after using them for close to a year.
I think there are many good options out there for you to explore. You might want to start with a small amount each to test out, see which ones you prefer and then put more money in.
Hope this helps!
Super idea (ETFs), after having no debt and set aside some form of an emergency fund,
get some idea...
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