Asked by Anonymous
Asked on 16 Oct 2018
I have about 10k of savings for now
Park your money in a high interest account first.(multiplier,cimb) Since you are new it is better to read up on investing. Then decide if you want to stock pick or just buy etfs or bonds. You will also need to know how much risk you are willing to take to invest. No point being eager to invest but when the market drops abit the next day you panic and sell everything.
Since you're new, I highly suggest reading up and learning more first before beginning to invest. Always know what you're investing in and do not follow others blindly. While you're reading and learning, you can park your savings of $10k in either Singapore Savings Bond, CIMB FastSaver (1% interest p.a) or a short term Fixed Deposit account.
If you'll like to try, you can put a small sum in robo-advisors (StashAway/Smartly) or STI ETF through POSB's InvestSaver
Investment instruments you can consider:
Singapore savings bond
High interest savings account
Regular Savings plan (eg: POSB RSP)
Of course, before you put your money into any sort of instrument, i highly recommend you to get yourself educated on the instrument(s) first.
I would suggest for a start, the Singapore savings bonds (SSB). Relative close to zero risk in default and coupon payment (ie:interest) are most of the time Higher than what fixed deposits offer. You may wish to diversify and opt for other instruments should you have a higher risk appetite
CIMB for no conditions. The others you can see the conditions that you need to fulfill.
Heres the link for you to have a look.
I think before you look into the various instruments as everyone else suggested, it is more important to determine your investment goals and also take your whole financial situation(and expected future changes) into consideration.
Eg. Have you gotten appropriate protection like hospitalisation insurance, critical illness insurance covered? How long can do leave your savings to be remain invested (that means you don't need the money to spend)? Plan for retirement (can afford to take a very long investment timeframe) ? Or you want your money to remain liquid (u want to withdraw them anytime). Once you define your goals, then u can start establishing your risk appetite, then u will know what instruments will be suitable.
If you are investing for next 2-3 years. Then I would suggest to invest in dividend sharing stocks and REIT's. As trade war is almost over, stock market and realestate market may rise in 2019-2020.
Here I am sharing a couple of links related to undervalued dividend stocks and REITS. I would suggest you to look over there.
Undervalued High Dividend Stocks https://www.fool.sg/2018/08/16/a-look-at-some-of-the-cheapest-stocks-in-singapores-stock-market-currently/
Perhaps you should monitor the market first as it is very volatile. Since you do not have any experience in investment, I would suggest you do some research into it first. You have to decide which investment instruments (such as equities, bonds, property etc) would suit your risk profile. Do not rush into investing the market. Perhaps you may want to consider Singapore Saving Bonds first.
Mm you may wish to look into any of the following if you are new in your investment journey
Singapore Savings Bonds
Citibank's Maxigain account (ask for waiver of the TRM fee, if possible, before opening the account). If not possible, CIMB's FastSaver for the flat 1% interest
ABF Singapore Bond Index Fund through POSB's Invest Saver programme
Robo advisories (with low risk profile portfolio selected)
Beyond these, I'd suggest reading up online or via books to find out more about investing before venturing into riskier instruments. Or find a mentor to guide you - you will need to usually fork out some sum for a workshop on learning how to invest, but you will save quite a bit of time as compared to figuring out stuff on your own. Make sure that the mentor you choose has a proven track record and has a strong community behind him.
But even before starting on anything, do ensure that you have sufficient funds to tide you over for a period of time if something untoward were to happen (God forbid). This serves as your emergency funds, and parking these into a FastSaver account is a good idea.
All the best in your investment journey, and do feel free to ask further if you need help. Cheers