Asked by Anonymous
Asked on 17 Apr 2018
Hi there! When it comes to investment, it really depends on your risk appetite and your goal. If you are looking for an alternative apart from the bank to combat inflation, then yes SSB would be good. Considering that you are still a student, you have a longer time horizon, you are able to afford a higher risk appetite. Thus, there are many other instruments out there, you can check out this cheat sheet here: https://blog.seedly.sg/cheat-sheet-what-are-the-common-investment-products-singapore/
Most times, SSB is used to diversify portfolios as it is rather risk-free by nature. Do note that, there is a min bid of $500, and increases in multiples of $500. From what I have heard, you can bid for $10,000 but you might only get $5,000 or so.
Personally, I started off with saving $100 every month with my own Regular Savings Plan (RSP) that invests into STI ETF on my behalf. You may read more about that too here: https://blog.seedly.sg/working-adults-easiest-ways-to-invest-a-monthly-sum-for-beginners/
Remember, do invest in the product that you are most comfortable with. I hope this helps and I wish you all the best!
SSB can be a good way to start building a safe base for your investment. But given that it is rather risk free, there is not much one needs to do while investing.
However, given that you are still a student, your risk appetite can be a little higher as time is still on your side. Of course, only invest after you set aside your rainy day funds.
Should you have some time, and are more keen on the learning journey, do start reading up financial blogs like Seedly (https://blog.seedly.sg) and get yourself exposed to the rest of the investment products. Safer stocks, of course, after you have researched and read up, can be a good start too.
Disclaimer: I work at Seedly