I am a fresh graduate who has never invested before, should I start investing now? - Seedly
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Huay Chee

Asked 2w ago

I am a fresh graduate who has never invested before, should I start investing now?

I'm a fresh graduate who has 9k savings and no other savings. I have a StanChart Jumpstart at 2% interest rate. I'm still learning about investment and was going to invest in STI ETF as per Seedly's recommendations, but not sure what to invest in now with COVID-19.

I keep hearing about share prices being low and I should invest now - but invest in what, exactly? Any advice would be appreciated.

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Hi Huay Chee,

Since you are just starting out, I would suggest you understand your personal finances, of course investment included. I'm assuming you are employed at the same time!

Before investing, you need to ensure to have an emergency fund of 6 months and basic insurance essential. This is all for the rainy day or any unforeseen circumstances. Thereafter, you will be able to allocate your resources better with your monthly salary.

In my honest opinion, STI ETF is never a good investment to me as its performance has clearly lagged other major index. I would rather go for S&P 500 ETF, QQQ, IWDA and more. There are too many to invest if you ask me, but you should start off by investing in a diversified index/portfolio. It really depends what you are interested in and your objectives cause SG and US investments work differently and also you need to further take a look at platforms that are suitable to your investment style.

Hope this helps! Feel free to always consult a licensed financial services consultant or me for more personalised advices. All the best!

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Boon Peng
Boon Peng
Level 6. Master
Answered 3d ago

Hello Huay Chee! Congrats on your graduation :) Before you start investing, one should have at least minimum 6 months worth of emergency funds. If you spend 1k per month, then at least 6k or more should be sitting in your bank account. Once that is done, get yourself protected by prioritising the insurance plans with a trusted financial advisor. When everything is covered, any excess cash can be put into an investment product that would help you to meet your financial objectives. Yes, seedly has many wonderful investment resources and you can take your time to understand the investment basic.

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Summer
Summer
Level 5. Genius
Answered 2w ago

My advice is that its importance to increase your financial knowledge first and understanding your personal risk appetite! This would require some effort put into research and self-reflection. Take the time as you are still young and in no rush. 

Some questions: "Am I investing in hopes of realising it all in the future to fund my child's future education/buy a house?" or "Do I want it to be an alternative source of annual income that can come in terms of dividend?" 

Important thing now is do not rush into buying popular stocks now just because they're cheap. You need the financial knowledge first to pick good stocks and evaluate them yourself. The notion of what goes down will come up worked in the last recession but this one seems to be an unpredictable battle to be honest.

I would recommend investing 50% in a market portfolio like S&P500 ETF as it historically yields 10% return and has a general upward trend. Another 50% can be other individual stocks that you like and see a potential of 10% return. Diversification is always important. There is no reward for bearing unnecessary risks.

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Wilson Nid A Break
Wilson Nid A Break
Level 8. Wizard
Answered 2w ago

Libbyapp.com go and borrow as many personal finance / value investing books and brush up your financial literacy, you wont be able to benefit getting piecemeal advice ere and there

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