Singapore Saving Bonds (SSB)
AMA First Investment
Asked on 29 Jan 2019
Especially since I lean more towards the risk adverse side, and also don't have a lot of time to monitor my stocks
When I started, it was dividend stocks, and the best one would be REITs. Seeing that you lean more towards rise adverse, I think REITs would be suitable for you. They give about ~5% returns annually. If you would like to take a read at it, you can start from here: https://forums.hardwarezone.com.sg/stocks-shares-indices-92/investor-basics-fundamental-analysis-concepts-reit-2972824.html
For growth stocks, you would need to be able to identify and take the volatility. And you can't really find that in Singapore as the businesses listed here are more or less pretty matured already.
If you are risk adverse, then you should not be doing too much stocks, or even none at all.
However if you do want to enter, then you would be better off with either stable dividend paying stocks, or diverisified ETFs or funds. However, you will have to monitor your investments (note: investments, not just stocks) since you can't expect things to run on their own.
I won't recommend growth stocks since they have massive price swings and are mostly in overseas markets; you will really need to spend time understanding them, monitoring them, and finding an entry point.
Go for growth stocks!
There is a book called Value.Able where you are able to see that for growth stocks, they retain most of their capital and they were able to compound beyond the dollars.
The author also proven that to get income, you can consider to sell the shares of growth stocks. Net-net, you are still better off.
The STI ETF is not a good investment compared to the SP500 (see 10 year chart of both indexes)
Good investments have the names
#1 stock passive indexing ETFs
#2 REIT ETFs
Before you start investing, it will be best to understand your objective. Here are some questions to help you:
What is your capital?
How will you want to invest your capital? E.g. lump sum or an amount on a regular basis
How long will you want to stay invested? E.g. 10 years
What is your risk appetite? E.g. How do you feel about short-term volatility?
What is your objective for investing?
There is no one-size-fits-all rule to investing. As a result, we will need to understand your investment objective in order to create a portfolio that you are comfortable with.
In addition to growth or dividend play, you may wish to consider a managed portfolio where you can tap on professional independent advice from the likes of BlackRock and Mercer to provide you with a customsied portfolio that fits your risk appetite.
Here is everything about me and what I do best.
Mm should you be involved in stocks if you are more risk adverse? If you are still keen to do so, you may want to look towards stocks with a strong moat or with big competitive advantage. Stocks like Sheng Siong or Netlink trust or even reits with strong sponsors. Alternatively, look to create an account with a robo advisory and save the headache of having to stock pick at your current stage.
In my opinion you should go for growth stock now. Make time to do proper research and buy into high quality growth stock. Sit back and relax and do nothing. This is what you should be doing.
Dividend stocks since you are more risk adverse. Dividend stocks will suit you more than growth
Dividend Growth stocks - Stocks that pay consistently pay out an increasing dividend due to well managed fundamentals
Why not both?
split into both, give it a couple of year to see what you like and what suits you?
Best way to experience swimming is dipping your toes in :D
Growth stocks. More often than not, dividend yield will increase as the company grows (thereby increasing dividend and share price). Dividend stocks are generally blue chip stocks with low potential for growth but maintain steady appreciation. Some are overvalued so beware.