How do I begin investing with $5k? I just read one of Seedly's articles, Index Investing (STI ETF) gives monthly returns? - Seedly

STI ETF

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Asked by Anonymous

Asked on 15 Oct 2018

How do I begin investing with $5k? I just read one of Seedly's articles, Index Investing (STI ETF) gives monthly returns?

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Izah Alep
Izah Alep
Level 3. Wonderkid
Updated on 07 Jun 2019

Based on your question,i suggest you to read more about index investing first to get a better understanding. Once you have a better understanding on how the stock market works then you can start investing. Else just keep on saving and treat that 5k as your emergency fund if you currently do not have one.

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Izah Alep
Izah Alep

16 Oct 2018

As per Zachary,yes it can be considered as emergency fund. But do take note that if you were to withdraw the SSB,the money will be deposited to your bank account the following month.
Leong Wen Fong
Leong Wen Fong

19 Oct 2018

cool!! thank you!
Kenneth Lou
Kenneth Lou, Co-founder at Seedly
Level 8. Wizard
Answered on 16 Oct 2018

SSB! November tranche looks good! 2% plus

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Eng You Guan
Eng You Guan
Level 4. Prodigy
Answered on 16 Oct 2018

STI ETF doesn't give monthly returns leh.. you can try this

SSB Jun/Dec issue (interest given on Jun and Dec) SSB May/Nov issue (May and Nov) SSB Apr/Oct issue (April and Oct) SSB Mar/Sept issue (Mar and Sept)

ES3 STI ETF (Feb and Aug) via Maybank Monthly Investment Plan G3B STI ETF (Jan and July) via POSB Invest-Saver

Note: STI ETF do not gurantee dividends every year and date of dividend is subject to changes.

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Good Day Every Day
Good Day Every Day
Level 6. Master
Answered on 28 Nov 2018

Singapore Saving Bond would be more suitable for you. In the meantime, you should read up on etf. Just my humble opinion.

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 6. Master
Updated on 17 Oct 2018

I'll assume that when you mentioned about monthly returns, you meant monthly dividends. If you are comfortable with US market stocks, one counter comes to mind that will fit your criteria: Realty Income (Stock Counter: O). This counter pays dividends every month since 1995, and have been increasing dividend payouts for the last 20+ years or so, and will soon be added to the list of dividend aristocrat stocks (stocks that increase dividends every year for 25 years or more).

From your question, it may seem that you are pretty new to investing. Do read up more first before starting on your investment journey, and do set aside emergency funds beforehand as well.

All the best.

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Yong Kah Hwee
Yong Kah Hwee
Level 6. Master
Answered on 16 Oct 2018

Temasek holdings is also issuing retail bonds soon. 2.74% (i believe) per year, for 5 years. you might want to consider that!

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Gabriel Lee
Gabriel Lee
Level 6. Master
Answered on 16 Oct 2018

Can consider Singapore Savings Bond, STI ETF via POSB InvestSaver, US ETFs via Robo-advisors (Stashaway/AutoWealth/Smartly), P2P lending etc. As for which to invest in, it all depends on your risk appetite. But as always, all investments come with risk so invest with money that you can afford to lose and read up before investing, don't invest/follow others blindly. Here's an article from Seedly on the various investment products that you can consider - https://blog.seedly.sg/working-adults-easiest-ways-to-invest-a-monthly-sum-for-beginners/

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Elsa Goh
Elsa Goh
Level 5. Genius
Updated on 07 Jun 2019

Singapore savings bonds. $5k is too little and precious for you to risk on shares or on anything else that doesn't guarantee returns.

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Pat
Pat

16 Oct 2018

what is the minimum which you would recommend to risk on shares?
Elsa Goh
Elsa Goh

16 Oct 2018

It's not just about the amount that should be risked on shares - it is about how much is available for investment. $5k is frankly not a lot and should be treasured and not risked on shares. To be able to get meaningful returns on shares i would say at least $8k, and only if you are confident you will not need that sum for the next 6 months minimum AND it should not be your emergency funds. Reason is that investing in shares carries a risk of losing almost all your capital. E.g. hyflux.
Luke Lai
Luke Lai
Level 2. Rookie
Updated on 07 Jun 2019

Not really if you do not use leverage

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Leong Wen Fong
Leong Wen Fong

16 Oct 2018

Wa! Sounds very risky bro!