The Best Short Term Investing Plan in Singapore

August 7, 2019
August 7, 2019 TheFinLens

The Best Short Term Investing Plan in Singapore

Singapore is popular in the investment community for its financial sectors and trade. Singapore is termed successful in global trade and this is due to its location and also for the fact there is negligible corruption. Besides this, Singapore also boasts of a skilled workforce, advanced infrastructure and low rates of tax. There are multiple benefits of investing in Singapore and you find a wide range of options available.

You need to have a thorough knowledge of the different investments and opt for a specific one in accordance to your requirement and the benefits this offers.  Besides the many long term saving plan, Singapore, you have the option of a short term investment plan which is favorable to quite a few.

Factors to consider:

Before making a choice between the long term saving plan, Singapore and the short term plans you need to ensure you consider specific factors.

* Objectives of the Investment:

You need to ensure you set specific goals for yourself so that you gather the required confidence for investing. You can start off with the monthly investment plans which are offered by multiple local brokerages. Investing for retirement is definitely different as compared to investing for buying a home or for funds to travel.

*Products of Investment:

It is advisable to opt for investments which are familiar to you, that is, you have all the information and knowledge about. Investing strategies include putting your funds in index-funds considered as ‘broad-based’. These include Exchange Traded Fund (ETF), Straits Times Index (STI) or the ABF Singapore Bond Index fund.

You need to gradually opt for complex instruments after you have the required knowledge. Real Estate Investment Trusts (REIT), is apt for those who like to own properties. You can also directly invest into the shares of specific property developers. Opting for bank stocks is apt for those working in the financial sector.

*Asset Allocation:

It is advisable to spread your investments across different classes of assets so that the investments are not correlated to each other perfectly. This is wise as with a single investment you have chances of losing out in case of any changes made in the economic policy.

Short Term Savings Plan Singapore

Some Short Term Investment Plans, Singapore:

Most of the investment plans listed below ensure returns which are risk-free.

  1. Singapore Government Bonds:

The government bonds by the Singapore government offers you a choice between the long term savings plan, Singapore and also short term savings plan. The long term investment plan can be anywhere from 2 years to 30 years.

The returns paid by these bonds are anytime higher as compared to the treasury bills of 1 year but is not the choice for those looking for short term saving plans.

  1. Fixed Deposits:

Fixed deposits work well for both, those looking for long term saving plan, Singapore or even those looking for a short term saving plan. Every bank has a different set of criteria with their fixed deposit schemes. You have the choice of seeking the help of qualified professionals to ensure you make the apt choice. Most of the banks offering fixed deposits have their own set of conditions which need to follow.

  1. Savings Plans:

Savings plans in Singapore again can be long term saving or short term saving. Insurance companies offering the savings plans tend to guarantee the returns along with the capital. There are specific saving plans which guarantee the capital but not the returns.

With a saving plan you either need to contribute continuously for a fixed period of time or lock the funds for a specific number of years. In case you are unable to do so, there are chances of you losing the returns.

Singapore Deposit Insurance scheme (SDIS) also covers these plans. It is possible to get an insurance component that ensures payment in case of an unfortunate incident.

Benefits of Investing in Singapore:

Singapore has a growing economy along with favorable demographics and a rich population. Investors need to be aware the focus on trade can lead to some dependence on the global foreign trade.

*Open and Free Economy:

Singapore is considered to be an easy country to conduct any specific business as this has tax rates considered as ‘favorable’ skilled workforce and low level of corruption. Besides which, the infrastructure is advanced.

*Demographics favorable:

With third highest income per capita, Singapore has the highest number of millionaires and the lowest unemployment rate among all the developed countries.

Be it long term saving plans, Singapore or even the short term saving plans, you need to ensure you monitor these on a regular basis. This allows you to make any required adjustments and plan out a conservative strategy that offers you a passive income. If not too sure, it is advisable to seek out professional help for the apt investment in Singapore.

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