I am fresh out of uni and have 4k in my bank. What should I invest in? Should i diversify or buy 1-2 stocks?

Congrats on completing this recent milestone. Before you get all excited to invest, please consider the following first:

1. Setting aside an emergency fund. Would personally recommend 6 months but given current economic climate, may wish to consider 9 months or more.

2. Repayment of tuition loan(if any). If you have taken up a study loan or used your parents' CPF for your tuition fees, you may need to start planning your repayment schedule(e.g X amount per month over X years starting from X)

3. Ensure adequete insurance coverage. Make sure you are adequetly covered with the key insurance policies such as health insurance, term/whole life as well as critical illneses.

4. Getting a job. The graduating class of 2020 is definitely having a hard time securing a job.The job environment is definitely a tough one for fresh graduates this year. You should secure a job first before thinking about investing.

Lets say if you are indeed in a good position to invest, you may wish to look at roboadvisors for a start given the low barriers to entry. You will not be charged exorbitant trading fees like $25 per trade as in the case of buying stocks directly.

Spliting 4k across 3-5 counters as you mentioned would represent a trading fee % of about 3% based on estimates. This means you will start off a position with -3% which potentially eradicates a lot of any future gains. When you place a sell order, you incur yet another 3% in fees. This means you need to have a 6% gain just to breakeven!

You did not provide a lot of information about your current circumstances but I would reasonably assume that you should look at other priorities first before thinking about investing.​​​

Do take a look at these articles first:

• Before investment checklist https://blog.seedly.sg/working-adults-begin-inv...

• Investment options https://blog.seedly.sg/ultimate-personal-financ...