Should I start my first investment in this economic downturn? What should I start with?

Hi anon,

Before starting your first investment, please consider the following:

Make sure your emergency funds are set aside (12 months expenses). Yes, you may not have anything big coming up in the next year, but life has a tendancy to throw unexpected curveballs. What if you were retrenched?
Make sure your insurance is settled. Have the necessary coverage in the right amounts
Any debt should be cleared or at a manageable level

If that's all settled, then there really isn't any better time than now. “Be fearful when others are greedy, be greedy when others are fearful” Most of us would know this phase very well. However, when it comes to the application, most people don’t apply it, either due to fear or lack of discipline.

Form your own investment game plan. Have a thesis, stick to it, and prepare to dig in for the next couple of years. Enter the market progressively with your funds, and don't expect to cash out for quite a while.

As for what asset classes to look at, there are many. Stocks, REITs, UTs, ETFs, etc all have pros and cons and you will need to do some research and arm yourself with a watch list. Some assets may suit you, some may not. However, the key is to start, or else you'll never start.

Before you start investing, it will be best to understand your objective. Here are some questions to help you:

What is your capital?
How will you want to invest your capital? E.g. lump sum or an amount on a regular basis
How long will you want to stay invested? E.g. 10 years
What is your risk appetite? E.g. How do you feel about short-term volatility?
What is your objective for investing?

Next, evaluate whether you are knowledgeable, skillful, and experienced enough to do DIY investing. Alternatively, you may consider to invest through a diversified portfolio of funds with independent and professional advice from global investment firms like Mercer, and BlackRock.

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