Investments Archives | Page 25 of 41

How To Start Investing In Singapore

As Kemmy Nola once said: “The beginning is always the hardest”. So, do not immediately quit on your dreams of becoming an investor. Consider these tips:

BUILD YOUR SAVINGS

Maintaining a robust savings pod is the initial step that you have to take before plunging into the world of investments. Your savings account will act as a cushion to help you handle unforeseen market shifts (e.g., fall of the Lehman Brothers). You do not want to lose all your retirement fund just because of a wrong investment move! Moreover, you cannot afford to risk your primary source of income due to your poor decisions as a newbie investor.

Commit to setting aside at least three to six months’ worth of your salary.

DO YOUR RESEARCH

The best way to fish in an unfamiliar territory is to widen your knowledge about it. Know the basics in investing by visiting your the nearby public library to borrow appropriate books. A few examples of the books you may find are “The Resilient Investor”, “Trading Options for Dummies”, and “7 Simple Strategies of Highly Effective Traders”.

You will realize that there are different types of investments to suit one’s preferences (i.e., preferences include risk tolerance). Read more about these and the firms that offer them. Do your homework beforehand to know where your money will go.

Image Credits: pixabay.com

ATTEND INFORMATIVE SEMINARS

Attending informative seminars will help you to absorb the theories and experiences of the experts who are way ahead of you in this field. Not many Singaporeans are aware that the Singapore Exchange (SGX) hosts several investment seminars. While some seminars cost over a thousand dollars, there are a number of free lessons available to the public. A good example is the upcoming talk entitled “Make Trading Your Source of Income”. For inquiries and reservation, please go to sgxacademy.com.

Another no-cost seminar that you can attend is Terence Tan’s “Get Rich Slowly, The Income Investing Way”. Terence Tan is the creator of the first Income Investing Programme in Asia-Pacific. This 2-hour workshop gives you a glimpse into the mind of some investors such as the renowned Warren Edward Buffett, to uncover the principles of income investing, and to determine the right stocks in 15 minutes or less. Furthermore, he will introduce you to his own methodology called Income Mastery Programme (IMP). Reserve a slot for the March 21st talk by visiting eventbrite.sg.

CHOOSE A BROKERAGE

A brokerage is a financial institution, which is authorized to trade securities for sellers and buyers. A budding investor has an array of options when choosing a firm to work with. Here are some of the local firms:

a. DBS Vickers Securities
b. Citibank Brokerage
c. OCBC Securities

These firms will help you to set up your first trading account. A trading account allows you to purchase shares from the companies in the stock market. Worry not about the account maintenance fees as they are generally non-existent.

Image Credits: pixabay.com

Sources: 1 & 2

[DISCLAIMER: THIS ARTICLE DOES NOT TAKE PART IN ANY OFFER OR RECOMMENDATION, OR HAVE ANY REGARD TO THE INVESTMENT OBJECTIVES, FINANCIAL SITUATION OR NEEDS OF ANY SPECIFIC PERSON OR FIRM. BEFORE COMMITTING TO AN INVESTMENT, PLEASE SEEK ADVICE FROM A FINANCIAL OR OTHER PROFESSIONAL ADVISER.]

Why You Should Invest into P2P Lending in 2017

Is expanding your investment portfolio one of your 2017 New Year’s resolutions? Unsure about which opportunity is best? Then P2P lending might be the right investment for you! Hailed by asset managers and investment experts as a new asset class with attractive returns, P2P lending is slowing catching on and moving mainstream. In 2015, P2P lenders originated loans worth $64 billion through a mix of retail and institutional investors. Market researchers expect the industry to grow at a cumulative annual growth rate (CAGR) of 53.06%. For an investor, there are many reasons to invest in this asset class, besides the segment’s potential.

Short Learning Curve and Requires Little Expertise

Compared to other forms of investments such as stocks or bonds, P2P Lending has a very short learning curve. It is considerably simpler to grasp – the platform would have already done most of the assessment for you. Funding Societies is one such P2P business lending platform. Winner of the MAS Fintech 2016 award, they have a presence across Singapore, Indonesia, and Malaysia. Not only do they perform detailed due diligence and credit assessments on all prospective borrowing companies, they also undertake collections if there are delays in payment by the borrowers. Only deserving companies are approved for loans. A factsheet detailing important information about each borrower and its directors is prepared for the investors and put up to facilitate an informed investing decision.

Low Investment Commitment

You don’t need to set aside large amounts to invest into P2P loans. Usually, the minimum investment is about $1000. At Funding Societies, it’s even lower – just S$100 per loan. This provides investors an opportunity to test out the concept and the platform before committing a larger quantum. Investors also have the flexibility to invest in shorter time horizons, with tenors ranging from 1 to 12 months. Compared to investments which require a longer lock-in period, P2P lending provides a shorter and more liquid investment option.

Opportunities to Diversify

You may perhaps already have investments in properties, stocks, bonds etc. P2P lending provides yet another avenue to diversify. Not only is P2P lending an alternate asset class, it also provides opportunities to invest into loans in different industries, which minimises risk exposure to any particular industry. The low minimum investment ensures that every investor irrespective of their income can ensure diversification by investing into multiple loans.

Attractive Returns

With returns more attractive compared to traditional investments, the appeal of P2P lending is obvious. At Funding Societies, investment returns could be as high as 14% per annum. Additionally, compared to most investment products, the risk is lower given the opportunities for diversification, shorter tenors, and easy-to-grasp concept.

Periodic Returns

Unlike most investment products, P2P investments are fairly liquid with returns (principal & interest) paid back on a periodic basis (usually every month). Funding Societies credits its investor accounts with repayments on a monthly basis with the option for investors to either withdraw or even re-invest, creating a compounding effect.

The World Bank has projected a 2.7% global growth rate for 2017, along with a lower growth rate of 1.8% for developed economies and predicted heightened uncertainty. Add to the fact that stock markets have been volatile and most categories of investments are offering relatively low returns, now is the right time to invest into a shorter-term and more liquid asset class with reasonable returns that ensures wealth creation even in gloomy times. Is P2P lending the right asset class for current times given the short investment horizon, relatively liquid option, low investment requirement, and attractive returns? Seems right.

Funding Societies is a Singapore-based P2P lending platform with a regional presence. It’s founded by Harvard and Stanford graduates, with collective management experience from banks, FIs, tech firms and startups. It’s funded by prominent Silicon Valley venture capital firm Sequoia Capital, who are early investors of Apple, Google and AirBnB amongst many others It is one of the first to receive licenses and recognition across countries in Singapore, Indonesia, and Malaysia. To start investing in P2P lending, just visit www.fundingsocieties.com.

Disclaimers

This article is contributed by Funding Societies.

It should not be construed that Moneydigest is endorsing this article or any of the products and services provided by Funding Societies.

Nothing in this article should be construed as constitute or form a recommendation, financial advice, or an offer, invitation or solicitation from Funding Societies to buy or subscribe for any securities and/or investment products. The content and materials made available are for informational purposes only and should not be relied on without obtaining the necessary independent financial or other advice in connection therewith before making an investment or other decision as may be appropriate.

Top 5 Investments Business Owners Should Make

When you run a business, whether it’s a small start-up or a large corporation, you need to be confident in where you invest all company profits. Pumping a lot of the money back into the business is the place to start in order to help it grow and remain profitable. Yet there are many other areas in which you can invest as a business owner that will provide dividends to gain further profits for strengthening the firm. Here are five of the best investments for business owners to make.

Penny Stocks

Especially for start-ups, new and small businesses, penny stocks are a great place to start for any business owner making their first investments. These are companies that trade with exceptionally low share prices (usually £3 or less), which means a lot of shares can be invested in with a low amount of capital. They are a highly volatile investment but do make a great starting place for learning the basics of investing.

Forex

If you want to find a reputable way of making some extra money for your business by investing profits, then forex trading with Fx Pro is a good option. There are a number of safe currencies to invest in during times of uncertainty, or more risky choices if you’re feeling brave. For beginners or experts, it offers a good way to boost profits across international currency markets.

Equity

Buying an ownership stake or equity investment in another company can provide additional capital for your firm. Obviously, it is highly inadvisable to invest in any competitors. Finding a successful company or one that is on the rise to take an ownership stake can result in good percentage profits for your business, as long as it doesn’t perform poorly or go bankrupt.

Property

Real estate is a great way to enter an entirely new market and with house and rent prices still rising, it can be incredibly lucrative. It may be better to invest in commercial property, related more to your business though, such as buying your office rather than renting if you have the profits. This provides a useful asset and one that will hopefully grow in value.

Bonds and Mutual Funds

For long term, safe investments bonds and mutual funds are the go-to option. Government bonds are some of the safest investment options out there, while mutual funds can be found that have low risk attached to them. They provide a good place to learn about market trends without the risk of losing big in one go.

Consider these five investments if you’re a business owner looking to put your profits in a worthwhile place.

Guide on Opening a Small Business in Singapore

Singapore has many aces down its sleeve as a business location in Asia and investors are turning their attention to this tropical global financial center. Getting started in Singapore does not mean that your new business needs to be a large corporation with many employees. You can open a small business in Singapore and enjoy all that the city has to offer in terms of business location, trading environment, and a diverse economy.

We are looking at the most important aspects to consider when starting a small company in Singapore and the taxation and incorporation must-do’s for first-time investors.

Starting a business in Singapore is easy

Singapore has a strategic location in Asia and many international companies operate their business from here. The World Bank ranked the city as one of the easiest places to do business in the world, an attribute that comes naturally to Singapore since the company incorporation requirements are very straightforward and investors are not burdened by overwhelming formalities.

The process of setting up a company in Singapore includes the following steps:

picking the right type of company and choosing the right name;
filing the company’s documents with the Accounting and Corporate Regulatory Authority of Singapore;
choosing your business location and hiring employees.

Small businesses in Singapore can take the form of a sole proprietorship, partnership or private limited liability company. Taxation requirements apply to all types of companies. Small businesses will need to pay the corporate income tax but a partial exemption applies for the first SGD 300,000 of chargeable income.

Asia is a market with many business opportunities for foreign investors. Top locations include Singapore but also Hong Kong. If you would like to know how to start a company in Hong Kong and how this is different from the process in Singapore, you can talk to a company formation expert. In case you would like to expand your business in Thailand and need to obtain a Thai long stay visa it is advisable to contact a team of local lawyers.

Small business ideas in Singapore

Singapore does not disappoint in terms of business and investment opportunities. The city has a diverse economy and skilled entrepreneurs will find it very easy to start their own business and quickly form their own client lists.

Some ideas for small businesses include event planning, food services (a fast food or even home-based bakeries), independent accountant or translator or business consultant for those who have already acquired experience and are ready to coach on others. Small companies in Singapore can provide a myriad of necessary services for day-to-day life. You could consider opening a company offering plumbing services in Singapore or opening a company that offers cleaning services, a laundry business or dry cleaners.

Starting a new business is a big step. Having the right business environment to set up a new company, in a city like Singapore, is just as important as the entrepreneurial drive itself. Young entrepreneurs and those who are just starting their small business can find out more about starting a business in Singapore by talking to a company incorporation expert.

How To Make Safe Investments In Uncertain Times

The world is seemingly getting smaller every day. Online platforms, newspapers and financial television stations usually monitor events happening in one country that can have effect on other countries worldwide. People are now updated and interconnected compared to any other time in the history. It is without doubt that globalization has its own advantages, but when economic crisis, global recession, war and trade imbalances occur, it suddenly leads to the idea of making safer investments and working on government deficits. The occurrence of such uncertainties can even confuse experienced investors.

Uncertainty

Every time an individual risks his money for a chance to make profit, there is always a level of uncertainty. When fresh threats such as political unrest, recession and war arise, levels of uncertainty increase rapidly as organizations can no longer correctly predict future trends and earnings. As a result, influential investors will cut their holding in stocks significantly where they consider it unsafe and transfer their funds to other sectors such as government bonds, precious metals and money –markets ventures. The results of the sell-off when large portfolios are repositioning themselves, causes the stock market to be unattractive for both small and big investors.

Effects of uncertainty

Uncertainty can be termed as the inability to predict future trends and events. Investors cannot be able to predict the possibility of a recession, how much it will cost, when it going to start or end or which organizations will be able to make it through without being affected. Most organizations usually make predictions of productions and sales trends to give public the confidence to invest in normal market conditions, but changing uncertainty levels can result in inaccurate prediction. Uncertainty can affect economic situations both at macro and micro levels. At micro level, uncertainty focuses on particular companies within an economy that is faced with recession or war, whereas on the other hand, uncertainty on the macro level focuses on the economy as a whole.

On a micro- level company perspective, uncertainty is a major concern for companies that deal with consumer goods and services on daily basis. Consumption can fall rapidly if there is a threat of recession as customers refrain from buying goods and services. As a result, uncertainty can cause organizations to lay off some of its employees in certain sectors to reduce the effects of lower sales. Uncertainty levels that surround company sales also affect the stock market.

On macro level perspective, uncertainty is expanded when the countries at recession or war are major consumers or suppliers of goods and services. For example, a country that supplies huge amounts of oils goes to war, uncertainty concerning the levels of globe oil reserves would increase significantly.

Another macro- level event that brings in uncertainty is the devaluation of exchange rates. Countries that are faced with recession and war are deemed to be unstable. Therefore, investors tend to move their currency and investments away from these countries.

How to react

When uncertainty situations heighten, the best weapon is to be well informed about all the events occurring worldwide. One can research individual companies, read newspapers and watch financial televisions to keep updated. It is also critical to analyse sectors that are likely to gain more and the ones that are going to lose during the crisis and choose a long term plan to invest. In addition, uncertainty times are also a good opportunity for investors who position themselves to take advantage of the situation. Brilliant investors will search for companies that provide goods and services that will be in high demand when the situation normalizes. However, it is very hard to commit investments in uncertainty situations, but one can reap huge benefits in the long run.

Online Forex traders such as CMC markets and their clients are good example of investors who should be updated about uncertainty. CMC markets operate in many currencies and therefore it is critical to monitor the performance of every currency. When a certain currency becomes weak because of a various uncertainties, it is advisable for traders to change and trade with other stronger currencies. Where a possibility of situations normalizing, traders can take the risk and hang on to reap the huge benefit that’s come along with such situations.

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