What Are The Best Investment Options in Singapore?

Singapore is an excellent place with many investment options that you can consider. In most cases, people need viable investments that will give them reasonable returns in both the short run and long run. Some cases of potential scam investment options have made people who aren’t keen enough lose a lot of money. As an investor, you’ll need to research intensively on any investment you come across without falling prey to investments that seem too good in their returns. There are also many online directories to check if the company or organization you’re about to invest in is properly regulated. This will give you peace of mind knowing that your investment is safe. Most investment experts advise people to go for lower return investments since they have a lower risk rate. Typically, each investment has some level of risk. However, the magnitude of the risk will vary significantly. To properly invest, you’ll need to have a savings culture and stick to it for some time. Some people will also seek alternative means of getting investment funds. If you invest properly, you’ll be able to accumulate wealth, have multiple income streams, and reduce the risk of inflation. Below are some best investment options in Singapore:

1. Government treasury bills

This is a lucrative investment option in Singapore that most people invest in. The main reason behind its popularity is the low-risk level associated with the Singapore government treasury bills. People can choose to invest in six-month or one-year government treasury bills. When you invest in these treasury bills, you’ll always have peace of mind knowing that there’s close to zero risk. The Singapore government doesn’t have many limitations when investing in treasury bills. Therefore, government treasury bills are the way to go if you want a short-term investment that will yield some cash while keeping the risk low.

2. Fixed deposits

Instead of keeping your money in a savings account while planning what to do or the investments to make, you can consider making fixed deposits to earn some cash. Different financial institutions in Singapore will provide varied fixed deposit rates. Therefore, to get the best rates for better returns, you should compare the different local banks and see what they have to offer in different durations. DBS is among the best banks in Singapore, offering better fixed deposits rates of 1.15% per annum. If you fix your money on a specific period, you’ll get the interest plus the principal amount after maturity. Depending on your needs, you can also withdraw the interest or fix the entire amount for another duration for more returns.

3. Bonds

In most cases, when the Singapore government needs to raise some funds, they consider issuing bonds for between two and thirty years. Whether you want short-term or long-term bonds will depend on your needs and your ability to carry risks. The Singapore government will pay you the stipulated interest depending on the duration the bonds run. If you want to continue for another duration, you may also ask for your principal amount. Your credit rating has a significant impact on the interest you get. Typically, a better credit rating will attract a much lower interest and vice versa. You can purchase bonds in various ways, including individual bonds from SGX, bond unit trusts, bond EFT funds, etc. Long term bonds have a higher risk compared to short term bonds. In 2021, the Singapore government issued bonds to get resources for infrastructural development, including upgrading roads, coastal protection projects, building additional railway lines, etc.

4. Real estate investment trusts and properties

You can invest in real estate investment trusts and even properties. Generally, Singapore being a small country, the demand for land is usually high. This means that land has a high price, making investment properties also costly and viable. Properties are physical in nature which makes them safe investments. Depending on the market trends and location, you can choose to invest in residential or commercial premises. These properties will generate revenue through rental income or sale. You can also consider real estate investment trusts which basically pool resources from investors to venture into real estate investments. In most cases, these funds are used for purchasing residential or commercial properties.

5. Exchange traded funds

People are really interested in investing in exchange-traded funds. These funds help an investor acquire some assets (shares or stocks) through a third party. There are trading houses that are regulated to perform the task and share the returns with the investors depending on the terms of the agreement. To ensure the investors’ money is safe by ensuring a low risk is involved, these trading houses ensure diversification in the investment.

6. Savings plans

You may choose to invest in savings plans through different Singapore insurance companies. There are two options here that you can select as an investor. First, there are savings plans that will guarantee an investor’s capital as well as some returns. Secondly, the next option involves getting a capital guarantee without any returns. If you invest in these plans, you’ll get your money fixed for a predetermined duration. You’ll also be required to make predetermined contributions for a specific duration. Failure to contribute might lead to the loss of some returns. The best thing about savings plans is that there are usually insured, meaning that you’ll get paid if unfortunate circumstances occur.

7. Stocks

Most Singaporeans are interested in investing in stocks or shares. Having some shares in a particular organization means that you’re part of those who own it. Stocks will help you earn through capital gains. If the price of stocks goes up, you can decide to sell them and get a return. Before investing in stocks, you must first analyze the stock market properly and learn the trading basics.

In conclusion, these are some of the best investment options in Singapore. You can also invest in retirement plans and savings bonds. Before deciding to invest in any particular area, it’s essential to perform thorough research on the investment option and assess the risk involved.