I am thinking of starting some low risk investments, more for purpose of getting long run dividends. What's the first step? Is it just going to a bank and say I wanna open a trading account? - Seedly
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Anonymous

Asked on 29 Sep 2018

I am thinking of starting some low risk investments, more for purpose of getting long run dividends. What's the first step? Is it just going to a bank and say I wanna open a trading account?

Completely new to investing here, and there are so many articles about investing in blue chips, STI ETF, REITs etc

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First you have to understand more about investments. There are all kinds of ways to invest in different kinds of stocks and bonds.

First go open CDP account, you may or may not use it but just open first no fees to open.

Theres are a few ways you can invest in Singapore.

  1. Singapore Savings Bonds one of the lowest risk investments you can get it Singapore.

https://blog.seedly.sg/guide-investing-singapore-savings-bond-ssb-interest-rate-how-to-buy/

  1. Start a regular saving plan then invest monthly in STI ETF, ABF bond ETF and other certain stocks if that is what you are interested in.

https://blog.seedly.sg/which-regular-savings-plan-is-the-cheapest/

  1. You can also invest using robo advisor which will help you diversify your portfolio and invest for you with fees

https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/

  1. Open a trading account to invest yourself. But this you must do your research before buying any stocks.

https://blog.seedly.sg/step-step-guide-opening-stock-trading-brokerage-cdp-account-singapore/

  1. If you want to invest in overseas stocks, you can take a look at Standard Chartered

BUT out of all this, only Singapore Saving Bonds can be counted as low risk. Or you can top up your CPF and earn interest but cannot withdraw early. Fixed deposits and high interest savings accounts are other options for low risk Go do your research and see what kind of investments are suitable for you before you put money in. Stocks are definitely not low risks no matter if its STI ETF, REITs or blue chip

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MT2020
MT2020
Level 7. Grand Master
Answered on 09 Mar 2020

Yeap, a good start would be via regular savings plan or robo advisor first. Meanwhile, you can read up online and research more about investing and build up your knowledge.

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Paridhi Jhunjhunwala
Paridhi Jhunjhunwala, Associate at Kristal.AI
Level 7. Grand Master
Answered on 29 Nov 2019

Hi!

I think the first step, if you are new to investing should be to learn a little more about it before you take the plunge. You need to understand your financial objectives as well as you risk appetite. Then you need to have a good asset allocation that aligns with your financial goals.

A good option till then would be to explore a robo-advisor, which will create an optimal portfolio for youbased on your investment objective and risk appetite. This will ensure that the funds are not lying idle till you are able to learn more and make your calls. You can use what the algorithm suggests or take your decisions via the platform.

I work at Kristal.AI, and it's my passion to evaluate various upcoming investment opportunities.

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Nicholas Chan
Nicholas Chan
Level 6. Master
Answered on 30 Sep 2018

Open a trading account with a brokerage, not a bank. Unless it's scb.

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 9. God of Wisdom
Answered on 29 Sep 2018

Stocks aren't exactly low risk to be honest. There's the chance of losing quite a fair bit of your portfolio if you are not careful. For low risk instruments, you can look into bonds like the Singapore savings bonds or the abf Singapore bond index fund which you can dca into via posb. Back to your query, firstly you will need a cdp account to hold your stock purchases. Unless you are using a custodian account where a financial institution holds the stock for you. As you are new to investing, do take some time to read up on investment books first to get a better understanding. Maybe you can also consider buying into a stock or the STI ETF on a monthly basis for a start. You can do this via posb's invest saver or maybank ke's monthly investment plan. Or start a portfolio with a robo advisory like stashaway. Whatever you do, don't walk into a bank and say you want to open a trading account. You may be whisked to a side and be talked into signing up for an endowment or ilp or annuity plan instead. Which is not what you wanna get into, as a large portion of what you are paying goes to the commissions and the bank / insurer. Hope this helps

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Jay Liu
Jay Liu, Sleepyhead at Land of Dreams
Level 7. Grand Master
Answered on 29 Sep 2018

You don't have to go to the bank to open an account. Like I applied for a maybank prefunded account, everything thing is done online. So it saves time.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 29 Sep 2018
  1. Open a CDP account directly or through your broker

  2. open a trading account with your preferred brokage firm. Note that some banks have a separate unit for trading for example DBs vickers so the investment arm will answer your trading queries which Is different from your normal banking arm

  3. read seedly articles to get ideas on investments

  4. assess your risk level and capital before starting your investments

Good luck !

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Yong Kah Hwee
Yong Kah Hwee
Level 8. Wizard
Answered on 29 Sep 2018

Yup go to a bank to open a brokerage account. get them to help open a CDP account too! a CDP account is used to hold whatever you bought using the brokerage account!

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