Savings

Investments

Asked by Anonymous

Updated 3w ago

I'm an NSF looking to invest about $3000 of my savings, I have left $20k into CIMB FastSavers account now. What would you recommend to invest in?

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)

0

Answers (4)

Sort By

Most Upvote

  • Most Upvote
  • Most Recent
Tay WenHao
Tay WenHao,
Level 4. Prodigy
Updated 3w ago

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.

3 comments

2

See all 3 comments

Zheng De Lee
Question Poster

30 Apr 2019

For SSB is a 2% return per annum/month? And also, if I want to invest into Wall Street market (NYSE/NASDAQ) where do I open does accounts? Does DBS young investor account do that?
Lok Yang Teng
Lok Yang Teng

01 May 2019

1. You should go with POSB SAYE since your monthly income from NS wouldn't exceed 1k under normal circumstance. 2.SSB has annual coupon of ~2.3%. 3. I would advise to invest in regional markets/UK since there is withholding tax for US stocks for non citizens. If you're still interested, you can consider SAXO.
Lok Yang Teng
Lok Yang Teng,
Level 6. Master
Updated 3w ago

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:

  1. Auto debit $500 into POSB SAYE account ($150 to live through the month)
  2. Train for IPPT and marksmen (to get that extra bonus)
  3. $100 monthly for ETFs/Robo-advisors
  4. Remainder to put into high interest savings account such as OCBC 360/CIMB FastSaver (DBS Multiplier not too relevant since my montly pay is about $650)
  5. About 10% of portfolio in stocks, 20% in low-risk bond (SSB)

2 comments

1
Zheng De Lee
Question Poster

30 Apr 2019

I have tried Robo Advisors, not working well with returns. What are your thoughts?
Lok Yang Teng
Lok Yang Teng

01 May 2019

It depends on the platform you use and the current market cycle. Currently, most markets are underperforming and you should use the market index as a comparsion to your robo-advisors' performance and not the absolute gain/loss.

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.

2 comments

0
Zheng De Lee
Question Poster

30 Apr 2019

What are the risks of putting into SSB as compared to CIMB? Can you state? :) thanks!
Lok Yang Teng
Lok Yang Teng

01 May 2019

Risk of SSB is quite minimal since principal and coupons are guaranteed by MAS. The risk of CIMB (bank) collasping and defaulting on your investment is much more probable than the MAS (SG Govt) collapsing and defaulting on your loan.
Zen Rogue Xuan
Zen Rogue Xuan,
Level 3. Wonderkid
Answered on 09 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.

0 comments

0