4 Types of Investments in Singapore

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The new year has given you a fresh opportunity to take a pause, look at your finances, and make your money work for you. But before it does that, you need to put in some work. How can you grow your money? Instead of keeping it all bottled up in your savings account, why not try out various investments in Singapore? 

If you’re thinking of ways to invest a portion of your salary or savings but don’t know how to start, these are four types of investments in Singapore you can consider.

  1. Stock market

This type of investment has been around for decades. It’s the ultimate high-return investment that also comes with high risks. What you do is buy the shares of a company (stocks) and gain ownership. These stocks are traded on the stock market, for example, the Singapore Exchange. 

The first step to investing in stocks is opening a CDP account. All Singaporeans and expats can open a Central Depository (CDP) account in Singapore. Several requirements must be met, of course. One must be at least 18 years old and own a Singaporean bank account (Citibank, UOB, Maybank, HSBC, OCBC, Standard Chartered, DBS/POSB). First, go to the Singapore Exchange website to register. Then, choose your preferred broker and open an online brokerage account. 

If you would like to invest for the long term, you may start and buy as soon as you have the money. However, if you choose to do it short-term, it’s essential to do more research as you will do some trading. 

  1. Gold & silver investing

Unlike stocks and bonds with high volatility, gold and silver stay in value despite the tumultuous Covid-19 era. These raw materials are of great use in the industry, from manufacturing to accessories. That’s why gold and silver still have high demand (and supply!), making it an excellent option for those looking to diversify their investment in Singapore.

To start, banks in Singapore offer gold savings accounts without any physical delivery—it’s all digital. Aside from this option, you can also do it the old way; buy gold bars, gold jewelry, or gold certificates. If you choose to invest in physical gold, remember to select a third party like a bank that can store your gold safely and offer insurance to your asset. 

  1. Robo-advisors

Have you ever wished that you had an intelligent personal advisor to choose the best investment in Singapore for you? Well, robo-advisors is your genie in the bottle. It’s a robot, following algorithms to determine the most appropriate investment for you, based on your risk profile. Robo-advisors are not limited to only one type of investment in Singapore. It’s available to investments like mutual funds and ETFs.

Robo-advisors are most suitable for beginners who are still grasping the concept of investment. People who are busy and have neither the time nor the energy to manage their investment portfolio can also benefit from using robo-advisors.  

  1. Debt investments

The term ‘debt’ has been around for ages. We often associate it with someone who owes money to another person or organisation. But what if you could invest in debt?

Enter debt investment, where one of the many possible products include retail investors lending money to a small enterprise with the expectation of earning interest on the principal. In other words, debt investment is when a company takes a loan for capital expenditures or working capital by selling debt instruments (bonds, bills, or notes) to investors. Many people see debt investment as fixed income since borrowers are legally required to repay the principal and interest on the loan. 

Debt investment allows investors to achieve short-term financial goals as these investments often mature between three to twelve months. However, if you’re interested in debt investment, it’s crucial to get information of the company you’re investing into, including what type of company you’re investing into, why they’re looking for a business loan, and what kind of returns you can expect to earn.

The investing space can be confusing for beginners. This guide can help you take that first leap into investment in Singapore. Hower, always do proper research, and don’t be afraid to ask around. That way, you’ll understand how to invest in no time!


Disclaimer: The information provided to you in this blog post is intended only for general information purposes only and does not constitute legal or other professional advice on any subject matter. The materials and the information provided are not intended to be and do not constitute an advertisement or solicitation.  In no event will Funding Societies be liable to any party for any direct, indirect, incidental, special, consequential or punitive damages for use of such information by you or any unauthorized third party.

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