general
3 Smart Principles for Investing in Singapore
Understand three smart principles for investing in Singapore: a longer time horizon provides flexibility, diversification lowers risk, and short-term goals need liquid options.
Why a Longer Time Horizon Matters
If you are saving for a long-term goal, you may have a longer time horizon. This longer time horizon may provide you with more flexibility to consider investment options with varying risk levels.
Lower Risk Through Diversification
By investing in a mixture of assets, you will be able to lower the risk of having all your earnings wiped out due to a single market downturn. To apply diversification to your investment portfolio, consider spreading your money across different assets such as stocks, bonds, Exchange-Traded Funds, and unit trusts.
Choosing the Right Investment for Short-Term Goals
If you are saving for a short-term goal such as taking a vacation or an upcoming home renovation, consider short-term investments that can be easily converted to cash.
Frequently Asked Questions
How does a longer time horizon affect my investment choices?
A longer time horizon may provide more flexibility to consider investment options with varying risk levels.
What is one way to protect my portfolio from market downturns?
Spreading your money across different assets—such as stocks, bonds, Exchange-Traded Funds, and unit trusts—can lower the risk of having all your earnings wiped out due to a single market downturn.
What should I consider for short-term savings goals?
For short-term goals like a vacation or home renovation, focus on investments that can be easily converted to cash.