The Ultimate Guide To Investing In Singapore

Tracy Lim

25th June 2019

SHOW ME THE MONEY. You can contribute your thoughts like Tracy here.

2 min read

Personal finance involves managing your Income, Spending, Insurance, Savings and Investments.

If you are reading this now, you are probably looking to invest to grow your money.

With the core inflation rate* at 1.3% in Singapore, investing sounds more attractive than the meagre 0.05% interest earned in your savings account.

(*According to MAS, Core Inflation is a better measure of underlying price pressures in the economy (vs. headline inflation). It excludes private road transport and accommodation costs, which are subject to short-term fluctuations.)

Who can Invest?

You can, if you check all these points!

Have no debt
Have spare cash (i.e after accounting for 6 months of savings funds)
Possess investing knowledge
Ready to do your own due diligence

Disclaimer: Investing can be highly risky. Be prepared that your capital can turn to zero if the company goes bust.

You may have stumbled upon some financial blogs online. Or you may have read some of Seedly’s blog posts and feel inspired to invest. Regardless of how promising a certain investment may sound, please always, ALWAYS do your own due diligence.

But if you’re ready for that, you are also ready to invest and get returns higher than the inflation rate (and even more)!

How To Open A CDP Account & Choose A Brokerage

Learn what is a CDP account and how to open one. Also, get answers to which is the best brokerage for you.

Click on me to go to the section!

Guide to Singapore Savings Bond

For: Low risk; Individuals who are risk-averse and want high liquidity.

If you want low risks but want to still beat inflation, Singapore Savings Bond is for you.

Guide to Singapore Savings Bond and How to Buy

Guide to Exchange Traded Funds

For: Medium risk; Individuals who want to diversify at lower costs.

An Exchange Traded Fund (ETF) usually tracks an index or a pool of many companies. Investing in an ETF gives you a small stake in many different companies.

For example, investing in one lot of the STI ETF is more affordable than investing in 30 different companies individually.

Guide to Regular Savings Plan

For: Medium risk; Individuals who want to cultivate the habit of saving monthly.

Guide to Stocks Investing

For: High Risk; Individuals who are risk-seeking and want more than just to beat inflation.

Common Myth: “High Risk, High Returns”?

Truth: High Risks ≠ High Returns.

Higher risks can POTENTIALLY give you higher returns, but know that it is not always an equal sign. The potential for upside returns is also the potential for downside returns.

Be prepared that your capital can turn to zero if the company goes bust. But of course, if it goes well, your initial capital can also grow to a lot more.

How To Read Financial Statements

The first step to understanding a stock? Learning how to read their financial statements. Here is a walk-through of the 3 financial statements, simplified with explanations using a fictitious company, Seedly Chicken Rice!

How To Read Financial Ratios

Value Investing

Value Investing: 5 Things To Look Out For In A Company

Guide to Real Estate Investment Trusts (REITs)

For: High Risk; Individuals who are risk-seeking and want to receive good distribution yields.

Guide to Alternative Investments: Robo-Advisors, P2P Lending and Cryptocurrencies

For: Very high risk-takers.

Alternative investments like peer-to-peer lending are generally very risky and may have high default rates.

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