Asked by Anonymous
Asked on 06 Apr 2019
I am new to investments thus please let me know to certain context as to how I can better invest my personal investment funds. Thank you! (if there are more things you want to share, feel free to comment)
Hey there. Im a NSF too and I've started investing since Polytechnic to generate more savings after realising that the bank interest is too low to counter inflation.
First of all to start off, have you opened a CDP account and a trading/broker account? This is required if you are buying stocks on the SGX. Else you just need a CDP if you are looking at SSB.
For myself i started with Singapore Savings Bond (SSB) as it is one of the lowest risks and has a decent return of around 2%. I put my "emergency funds" in this as it could be taken out within a month of notice. Another good thing about SSB is there is only a charge of $2 per transaction (buy/sell) and there is no penalty if you sell your bond (aka redeem the bonds) before 10 years. So its technically not 'locked-up'.
After SSB, i started to invest in some ETF. I used POSB Invest Saver to purchase NIKKO AM STI ETF every month ($150). Theres a promotion now which give 100% rebate on the sales charge for first 3 months. I feel that this is a good start for investing and comes with roughly a 3% dividend.
After reading more about stocks and trading i started a DBS VICKERS YOUNG INVESTOR ACCOUNT with DBS. I also created a DBS Multiplier Account which allowed me to trade using 'cash upfront' which lowers the sales charge as compared to other banks/brokers. For stocks i started with local blue chips stocks which are more stable. A few stocks you can research on is CAPITALAND, COMFORTDELGRO, DBS, OCBC, UOB, etc. I feel that these companies wont go bust anytime soon and thus wont need to be afraid of losing all the capital.
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30 Apr 2019
01 May 2019
I am an NSF too, just like yourself. I'm unable to specifically recommend or tailor the different modes of investments to you needs since each of us is different. Here's what I do, maybe you can use it for reference:
30 Apr 2019
I would personally ask you to take a look at Maybank Kim Eng Monthly Investment Plan, you can invest through it for as little as $100 a month, what makes it stand out from others is that, it gives you access to 5 different countries, such as U.S, Hong Kong, Malaysia, Singapore and Thailand. It also has more stock choices to choose from compared to other Regular Savings Plans, the fee is also low at minimum $1 or 1%, although the stocks are kept in a custodian account and not a CDP account, hence the lower fees.
As for Your 20K you have, you should put into part of into Singapore Savings Bond(SSB), it is backed by the Government Of Singapore, and provides a higher rate of return about 2% compared to CIMB Fastsaver.
30 Apr 2019
Since you are young(the perks of youth), you might consider some risker investments(Higher risk higher rewards) such as putting 5-10% into cryptocurrencies and p2p lending.