I’m 26 this year and just started working, should I start with a ETF as my first investment? - Seedly
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Seedly PFF 2019

Anonymous

Asked on 02 Mar 2019

I’m 26 this year and just started working, should I start with a ETF as my first investment?

What investment instruments would you recommend

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Arpita Mukherjee
Arpita Mukherjee, Community Evangelist at Kristal.AI
Level 6. Master
Answered on 13 Nov 2019

Hi Anon,

The first step of your investment journey would be to read up and understand what investing is. Although there are so many financial advisors out ther who can help you with this, I'd suggest that you go for a robo-advisory platform to do the job of assessing your current financial position and recommend a portfolio strategy after reviewing your risk profile. As for the "catch", I would say that Robo-advisors are still not very different from your ordinary financial advisors as both options will still have a management fee incurred for users. The difference lies with the amount, as Robo-advisors have lower management fees.

I work at Kristal.AI, and my mojo is to help people make the right financial decisions. If you think I helped you, do give me "Thumbs up". If you think my response was biased let me know, I will work on it.

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Alex Chua
Alex Chua, Freshmore (Engineering System Design) at SUTD
Level 6. Master
Answered on 28 Feb 2020

Etf is a good way to get your hands on investment and understand how investment works.

You can take a look at robo advisors. They are a portfolio of etf/ unit funds that comes at a lower cost. The capital is relatively low and yet you can be well diversified. There are many financi advisors in the robo advisors help you manage your portfolio.

Take the time to learn about investment

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Geraldo L.
Geraldo L.
Level 7. Grand Master
Answered on 28 Feb 2020

It's a good way to start investing with ETFs, helps you avoid potential pitfalls that investors will make.

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Davin
Davin
Level 7. Grand Master
Answered on 27 Feb 2020

ETF is not for everyone but it's for 90% of ppl.

If u do not have much experience and time for stock picking, ETF will b good for the start.

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Andy Sim
Andy Sim, HR Professional at a Financial Institution
Level 7. Grand Master
Answered on 27 Feb 2020

ETFs are a good way to start your first investment and robos can help you achieve that. I'm also planning to go with a robo as well! :)

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MT2020
MT2020
Level 7. Grand Master
Answered on 27 Feb 2020

If you do not have prior knowledge beforehand, then yes, you should invest in etf. If you have knowledge of investment products, you should invest in individual stocks.

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Tai Zhi
Tai Zhi, Chief Investment Officer at Autowealth
Level 6. Master
Updated on 05 Mar 2019

I have shared this during last Saturday's panel.

The worst nightmare for investors who just got started is to take excessive risk, suffer a catastrophic loss, lost confidence and then never ever invest again.

(1) Start low risk, build confidence before gradually increasing portfolio risk

Investors who just got started should go low risk first. Be patient. Go through a market correction to feel the market fluctuations and better understand your emotional resilience towards market volatility (ie fluctuations). When you gain more confidence and experience, gradually increase your portfolio risk to accelerate your wealth accumulation.

(2) Invest broadly to diversify away risk

Do not be too narrowly focused, diversify broadly so that specific market developments like U.S.-China trade tensions will not cause a catastrophic loss.

Therefore, try to start off with a globally-diversified portfolio of stocks ETFs and bonds ETFs with a higher allocation to bonds ETFs. For example, you may consider starting with the AutoWealth Conservative Portfolio (60% global government bonds ETFs 40% global stocks ETFs) before switching to a portfolio with higher risk.

Check out our blog posts for other useful investment insights and concepts: https://www.autowealth.sg/blog/

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