Singaporeans, Get Ready to Invest: How to Buy Funds in Singapore

If you’re looking to invest in funds in Singapore, there are a few things you need to know before you get started. First, it’s important to understand the different types of funds available and how they work. Mutual funds, exchange-traded funds (ETFs), and unit trusts are all popular options, each with their own benefits and drawbacks.

A person using a smartphone to access a financial app, selecting a fund, and completing the purchase with a digital payment method in Singapore

Once you have a good understanding of fund investment in Singapore, it’s time to start thinking about executing your purchase. One of the easiest ways to get started investing in funds is to purchase them through an online brokerage. Many leading online brokerages offer mutual funds, although they may also list them as ETFs and Unit Trusts.

If you’re new to investing, you may have some questions about how to buy funds in Singapore. Don’t worry – we’ve got you covered. In this article, we’ll walk you through everything you need to know to get started, from understanding the different types of funds available to executing your purchase.

Key Takeaways

  • Understanding the different types of funds available in Singapore is crucial before investing.
  • Purchasing funds through an online brokerage is an easy way to get started.
  • With the right knowledge and guidance, investing in funds in Singapore can be a great way to grow your wealth.

Understanding Fund Investment in Singapore

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Investing in funds is a popular way for investors in Singapore to diversify their portfolios and achieve their investment objectives. Here are some key factors to consider when investing in funds in Singapore.

Types of Funds Available

There are various types of funds available in Singapore, including ETFs, unit trusts, and mutual funds. These funds invest in a range of asset classes such as stocks, bonds, commodities, and real estate. ETFs are typically passive investments that track an index, while unit trusts and mutual funds are actively managed by a money manager or fund manager.

Assessing Your Investment Objectives and Risk Profile

Before investing in funds, it is important to assess your investment objectives and risk profile. Your investment objectives will determine the type of fund you should invest in, while your risk profile will help you determine the appropriate level of risk you are willing to take on.

Selecting the Right Investment Platform

When selecting an investment platform, consider factors such as the expense ratio, the holdings of the fund, and the market volatility. Some popular mutual funds in Singapore include the LionGlobal Vietnam Fund, the Singlife MM Capital Growth, the UBS Global Emerging Markets Opportunity Fund SGD P, the LionGlobal Short Duration Bond Fund Class A (SGD) (Dist), and the JPMorgan Multi Income. The STI ETF index fund is also a popular choice for investors looking to invest in the Singapore market.

Online brokerages such as SingSaver and FSMOne are popular options for investors in Singapore looking to invest in funds. These brokerages offer a range of investment products and services, including access to securities, equities, and other investment products.

Investing in funds can help you achieve your investment objectives and diversify your portfolio. By understanding the types of funds available, assessing your investment objectives and risk profile, and selecting the right investment platform, you can make informed investment decisions that suit your needs and preferences.

Executing the Purchase of Funds

A person using a computer to purchase funds online in Singapore

Once you have decided on the type of fund you want to invest in, it’s time to execute the purchase. This section will guide you through the process.

Opening an Investment Account

Before you can invest in funds, you will need to open an investment account with a brokerage firm. There are many brokerage firms in Singapore, such as DBS, UOB, and OCBC. Each firm has its own fee structure, so it’s important to do your research and compare the fees before opening an account.

Understanding Fees and Charges

When investing in funds, there are several fees and charges that you need to be aware of. These include management fees, shareholder fees, and third-party commissions. It’s important to understand these fees and charges, as they can have a significant impact on your investment returns.

Making an Informed Purchase Decision

When purchasing funds, it’s important to make an informed decision. This means doing your research and understanding the investment approach, risk profile, and financial goals of the fund. You should also consider the fund manager’s track record, as well as market movements that may affect the fund’s performance.

To help you make an informed decision, you can refer to the information provided by the fund manager, as well as articles from reputable sources such as The Straits Times. You can also seek advice from a financial adviser.

Example Funds

Here are some examples of funds that you can invest in:

  • LionGlobal Vietnam Fund
  • Singlife MM Capital Growth
  • UBS Global Emerging Markets Opportunity Fund SGD P
  • LionGlobal Short Duration Bond Fund Class A (SGD) (Dist)
  • JPMorgan Multi Income
  • SPDR STI ETF Index Fund

Regular Savings Plan

If you want to invest a fixed monthly sum, you can consider a Regular Savings Plan (RSP). Several brokerages, such as POSB Invest Saver and DBS Invest Saver, offer RSPs in Singapore. This can be a good option for retail investors who want to invest in funds but do not have a large amount of capital.

Supplementary Retirement Scheme

If you want to invest for retirement, you can consider the Supplementary Retirement Scheme (SRS) or the Central Provident Fund Investment Scheme (CPFIS). These schemes offer tax benefits and can help you build a diversified investment portfolio.

Risks

It’s important to note that investing in funds comes with risks. Funds are not actively managed, and their performance is subject to market movements. Some funds also have an end date, which means that you may need to sell your shares before the end of the investment period. You should also be aware of the risks associated with investing in companies issuing shares traded on an exchange.

Conclusion

Investing in funds can be a good way to generate passive income and achieve your financial goals. By opening an investment account, understanding the fees and charges, and making an informed purchase decision, you can build a diversified investment portfolio that suits your needs.

Frequently Asked Questions

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What’s the best way to start investing in funds with just $100 in Singapore?

Investing in funds with a small amount of money is possible in Singapore. You can start by investing in a Regular Savings Plan (RSP) offered by many banks and financial institutions. An RSP allows you to invest a small amount of money every month in a fund of your choice. This method of investment is suitable for those who want to start investing with a small amount of money.

Can you guide me through purchasing mutual funds online in Singapore?

Yes, buying mutual funds online in Singapore is easy. You can sign up with an online brokerage and purchase mutual funds through their platform. Many online brokerages offer mutual funds, ETFs, and Unit Trusts. You can compare the fees and charges of different brokerages and choose the one that suits your investment needs.

What are the steps for a foreigner to invest in Singapore’s funds market?

Foreigners can invest in Singapore’s funds market by opening a brokerage account with a Singapore-based brokerage firm. The process of opening an account is similar to that of a local investor. You will need to provide identification documents and proof of address. Once your account is open, you can start investing in funds that are available to foreign investors.

How can one invest a sum of $10,000 in Singapore for optimal returns?

Investing a sum of $10,000 in Singapore can be done by investing in a diversified portfolio of funds. You can choose to invest in a mix of equity, bond, and money market funds. It’s important to do your research and choose funds that have a good track record of performance. You can also seek the advice of a financial advisor to help you make informed investment decisions.

Could you explain the process of investing in funds from India to Singapore?

Investing in funds from India to Singapore can be done through a Qualified Foreign Investor (QFI) scheme. The QFI scheme allows foreign investors to invest in Indian mutual funds. Once you have invested in Indian mutual funds, you can transfer your investment to a Singapore-based brokerage account. You can then sell your investment or hold it for the long term.

What are the investment options available for beginners looking to buy funds in Singapore?

Beginners looking to buy funds in Singapore can start by investing in a Regular Savings Plan (RSP) or a robo-advisor platform. An RSP allows you to invest a small amount of money every month in a fund of your choice. A robo-advisor platform offers a low-cost way to invest in a diversified portfolio of funds. You can choose a robo-advisor that suits your investment needs and risk profile.

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