Best Investment Options in Singapore

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When we think investments, we tend to think about a huge capital. However, you can start investing with the little you have and soon enough you will have a reasonable investment portfolio. Most popular investors in Singapore did not start with huge amounts, they started with small amounts, and through consistency, they built their current wealth. So quit postponing your investment decision and start now.

Investments help you achieve financial independence, beat the inflation rate, multiply your money and help you maintain your lifestyle upon retirement. The big question is which are the best investment options in Singapore? A good investment decision will give good returns in the long-run. Here are some of the best investment options in Singapore.

 

Stocks

Stocks have been proven to be the most reliable long-term investment option. Stocks are shares in the ownership of a particular company. A shareholder is entitled to dividends and assets of the company.

There are two ways in which you can make money through stocks: capital gain and dividends. Capital gain is when you get returns from selling the shares at a higher price than your buying price. It gives you the highest returns from the stocks. On the other hand, dividend income is when a company distributes a part of its profits to shareholders. Your amount of dividends depends on the percentage and type of company shares you own. Blue chip stocks, value stocks, and exchange traded fund (ETF) are some of the stocks traded in Singapore.

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Properties

Properties are a good investment option especially when the property is located in a place where the property’s value is likely to appreciate at a good rate. The increase in population and scarcity of land in Singapore is making makes the property an ideal investment.

Unlike stocks which do not require your input once you invest, the property requires you to work on maintenance, management, and leasing of the property to get rental income. This might mean extra costs. However, most property investments give good returns which make it worth the extra input. The value of the property also increases with time. Thus you can sell the property at a later date and earn profits.

 

Singapore Bonds

Bonds are categorized in the risk-free investment category. This is because they have low risk, stable and predictable returns. This makes it an ideal investment for risk-averse investors who want predictable interest amounts. Bonds are an investment where you lend money to a government or corporate company with expected full re-payment at a future known date referred to as maturity date. Between the investment date and maturity, the investor receives interest payments (coupons) at a regular interval.

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REITs

Investing in property is an attractive investment. But for people who have small amounts of money, it may seem like a dream. This is where Real Estate Investment Trusts (REITs) comes in handy. REITs are entities which mainly invest in real estate. As an investor, you invest in these professionally managed properties and return you get an income. This income is in form of dividends from rental income and capital gains when the property gains value. Residential, healthcare, hospitality, retail, offices, and hybrids are some of the REITs properties you can invest in.

No amount of money is too small for an investment. Start now and you will reap big in the long-run.