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3 Smart Principles for Investing in Singapore
Learn how a longer time horizon may offer flexibility for varying risk levels, the importance of matching short-term goals with liquid investments, and how spreading money across different assets can lower the risk of wiping out all earnings.
Considering Your Time Horizon and Risk
A longer time horizon may give you more flexibility to look at investment options with varying levels of risk. When you are saving for a short-term goal such as a holiday or an upcoming home renovation, you could consider short-term investments that can be readily turned into cash.
Diversifying Your Portfolio
By spreading your money across a mix of assets, you can lower the risk of losing all your earnings from a single market downturn. To apply diversification to your portfolio, think about distributing your funds across different instruments like stocks, bonds, Exchange-Traded Funds, and unit trusts.
Getting Started with These Principles
Understanding your own risk appetite and time horizon helps you choose investments that suit your needs. Combining this with a diversified portfolio makes it easier to stay disciplined over the long term.