Investments Archives | Page 9 of 41

Follow These Steps To Acquire Stocks In Singapore

With an abundance of low-cost investment brokerages and a wide range of investment products, we believe that anyone can get started on investing. Unless your ambition is to become a day trader, you do not need to master technical analysis or complex charting techniques.

Simply carve out your path by following these steps.

#1: OPEN AN INVESTMENT BROKERAGE ACCOUNT

Unlike your comfort food, stocks cannot be bought at a store and taken home in a paper bag. You need to go through an account with an investment brokerage. A brokerage is a company or firm that acts as the middleman to connect you to the stock exchange.

Brokerage companies usually receive compensation by means of commissions or fees that are charged once the transaction has been completed. Brokerage accounts charge through minimum fees (i.e., to pay on each trade) or trading fees (i.e., percentage of each trade). These fees will affect your profits, so ensure that you do your research.

#2: FUND YOUR ACCOUNT

It is necessary to transfer money to your account to begin trading. Take note of the brokerage company’s requirements such as the minimum fee.

These companies generally accept multiple funding methods such as PayNow transfer, FAST transfer via online banking, or overseas remittance. Use a method that suits you best.

#3: DETERMINE WHICH STOCKS TO INVEST IN

Do your research, ask financial questions, and compare the facts to determine which stocks to invest in. There are different types of investment products such as Blue chip stocks and Real Estate Investment Trusts (REITs).

Blue chip stocks are the stocks of well-known, high-quality companies that are leaders in their industries. Investors usually hang on to these stocks for long periods and collect its dividends. Local “blue chips” include Singtel, DBS, and ComfortDelGro. Many Singaporean investors prefer to invest in blue chip stocks because of its perceived certainty and stability. Local blue chips are deemed to be less risky and are often common household names that most Singaporean investors can relate to.

Real Estate Investment Trusts (REITs) allow you to buy shares in a variety of properties. For instance, CapitaLand and Ascendas gives you access to purchase shares in commercial properties such as shopping malls and office buildings. It is one of the most popular options for investors seeking regular income.

#4: ACQUIRE YOUR FIRST SHARES/STOCKS

Once your funds have been sorted out, you can buy your first shares/stocks using your brokerage’s online platform. As a beginner, you may make investing a regular habit by spending a fixed amount every month on generic Exchange Trade Fund. The Exchange Trade Funds (ETFs) are similar to mutual funds in many ways. Although, ETFs are bought and sold throughout the day on stock exchanges.

Image Credits: unsplash.com

The idea is that over the long term, the ETFs will rise. By buying a fixed sum every month, you will be able to spread out your risk through ups and downs. Consistently funding your account is key.

Sources: 1 & 2

Consider these options to start investing from $100

Do you know that according to a study of Singaporeans’ financial wellness state by OCBC last year, only 60% of women have investments? Faring better on the flip side, 75% of male respondents aged between 21 and 65 noted that they are investing.

Are you a novice when it comes to investing? If you have a low-risk appetite and not so investment savvy at the moment, fret not. All you need to take is baby steps.

“You don’t need a lot of money to start investing,” highlighted Vasu Menon, executive director of investment strategy at OCBC Bank. “A regular investment plan where you squirrel away small amounts each month into pre-selected investments is one fuss-free way to start building a portfolio.”

Consider these options to start your first investment from $100!

#1: Exchange Traded Funds (ETFs)

The OCBC Blue Chip Investment Plan allows you to invest in ETFs from just $100 a month. Just in case you’re clueless, ETFs are funds that are listed and traded on the stock exchange.

Even if you do not know much, that’s okay. The great thing about ETFs is that you don’t need a lot of market monitoring, thanks to the dollar-cost averaging. By regularly investing a specific sum of money over time, you can potentially lower your average price per counter.

“Diversify over time by phasing your investments into the markets through a regular investment plan, so that if the markets see a drawdown or sharp volatility, you will have dry powder to buy at lower levels, which reduces your average cost. A regular investment plan allows you to benefit from dollar-cost averaging,” Menon shares.

#2: Unit Trusts

Image Credits: scripbox.com

For folks who want to know that their money is in good hands, unit trusts would be a good investment strategy. To put it simply, an experienced fund manager oversees a pool of funds from a group of investors and uses it to invest in a range of financial assets.

The good news is that you don’t need significant capital to access a diversified portfolio. You can choose between making consistent investments from $100/month or opt for the minimum $1000/month lump sum route.

Purchase methods include cash, Central Provident Fund (CPF) Investment Scheme, and the Supplementary Retirement Scheme (SRS) for selected funds.

“For myself, I started my investment journey by investing my own CPF monies since the funds were just sitting idle in my account, out of sight and out of mind. I took the first step by setting up a CPF investment account and began exploring opportunities to invest,” said Tan Siew Lee, Singapore’s head of wealth management at OCBC Bank.

#3: Robo-Investing

As we come to a close, robo-investing is our last option. Through this investment strategy, novice investors who want to invest actively via algorithms will be able to construct, monitor, and review portfolios.

Menon shares that OCBC RoboInvest could be one way to begin. Selected portfolios just require a small initial investment of US$100, making a fantastic way for almost anyone to kickstart their investment journey.

While we can’t say the same for other robo-investing platforms, Menon assures us that OCBC RoboInvest automates investments with guidance and validation from wealth experts to give you peace of mind.

However, that doesn’t mean a hands-off kind of financial venture. While your portfolio is monitored and periodically re-balanced based on economic and market movements, you hold the final say to approve any changes made to your portfolio.

Want to find out more on OCBC RoboInvest? Click through this link: ocbc.com/personal-banking/investments/roboinvest.

Tighter COVID-19 measures have led to Singapore shares reaching more than two-month low

The tighter measures made known by the Ministry of Health (MOH) yesterday (14 May) probably came as a shock to many.

However, it’s absolutely necessary in response to the spike in COVID-19 community cases recently. As we gear up to work from home, there are also daily and social routines to make adjustments to.

In terms of investments, Singapore shares aren’t looking that good. With the latest restrictions announced, investors are reacting accordingly.

Straits Times Index (STI) fell more than 3% initially

After the news report, the benchmark STI dropped by 3% before closing down at 2.2% or 3,055.02 points. Since 8 March, the decline on 14 May marks STI’s lowest level.

DailyFX’s strategist Margaret Yang commented that the market is not ready for the newly set COVID-19 measures, considering that the social gatherings group limit was only cut from eight to five people just a week ago.

“On the economic level, there will also definitely be some adverse impact on the services and travel sectors,” she added.

To that, IG’s market strategist Yeap Jun Rong said that the current situation had cast doubt on the pace of economic recovery ahead. Since a significant portion of STI’s constituents is cyclical, the economic cycle will have a massive impact on its numbers.

Aviation-related counters most badly hit

Image Credits: CNBC

It’s probably not a surprise that the aviation-related counters are the ones most affected.

To give you some numbers, Singapore Airlines (SIA) fell 5.7% to an 11-week low of S$4.50, while flight caterer SATS plunged 3.9% to S$3.69. Integrated resort operator Genting Singapore also dropped 3.1% to S$0.79.

Ms Yang noted that investors were hoping for the vaccine roll-out to spur economic recovery and border reopening. But with Singapore now reversing, this means that it will probably take more time for the aviation industry to get back on track.

What’s next for the stock market?

According to CMC Markets analyst Kelvin Wong, the unlinked community cases will play a vital part in deciding how the stock market will react for the rest of May. Should it see an increase, more stringent measures may pass and, travel-related stocks will further weaken.

While it is too early to comment, Mr Yeap expects retail, hospitality, and entertainment-related stocks to come under pressure if the COVID-19 situation continues to spiral downward in Singapore.

“That said, the overall downside impact may be limited considering that prompt action was taken to limit the virus spread and more than 20% of Singapore’s population has been fully vaccinated,” he added.

Here are some investment-worthy gemstones according to a Singapore-based Italian jeweller

What are the gemstones that come to mind when we mention “investment-worthy”?

Maybe some of you might be thinking of rubies, emeralds, and diamonds. While the three are definitely high in value, they are not the only stones deserving of all your attention.

According to Danilo Giannoni, a Singapore-based Italian jeweller, there are other sparkly rocks likely to grow in value. So, stay on this page if you want to work out your next investment move.

#1: Royal blue sapphire

Image Credits: Arte Oro

Since a saturated royal blue sapphire is internationally recognised and highly sought after, an investment in that would be considered “safe”. Expect to spend in the range of US$50,000 per carat if you’re looking to purchase a decent-grade blue sapphire.

However, it’s also worth noting that other colours are quickly gaining popularity. You will want to spend some time researching the saturation and tones to find the right sapphire for investment.

#2: Scarcely precious tanzanite

Image Credits: Arte Oro / Client’s private collection

When something is in short supply compared to the demand for it, its value shoots up. This is a simple concept most of us understand, especially since the early days of the pandemic has led to high prices of face masks being sold.

Similarly, since tanzanite can only be sourced from a small area in Tanzania, supplies are limited. The prices are currently reasonable at US$1,000 to US$5,000 per carat, way lower than sapphires. But still, it’s forecasted to rise sharply in price should interests peak.

#3: Mid-range toned Paraiba tourmaline

A pure and almost luminous turquoise tourmaline

Image Credits: Arte Oro

Speaking of rarity, the Paraiba tourmaline wins the comparison against tanzanite. They can only be extracted from three mines situated in the remote areas of northeastern Brazil.

Thus, you can expect its high price tag of up to US$100,000 per carat, though its exact figure greatly depends on tones and colours. While clarity is essential, it’s not the top deciding factor for the best returns.

#4: Beautifully reactive alexandrite

Image Credits: brides.com

When we say reactive, we mean that this precious mineral reacts to various light sources to emit its colour-changing characteristic. Thanks to its chemical composition, a person who owns this gem can observe its colour change from blue-green to red-purple from day to night.

It’s not just stunningly beautiful to observe, but it also performs well in the markets. Over the last few years, alexandrite has seen double-digit annual returns by collectors worldwide. An extraordinary carat with top-tier quality can cost up to US$100,000.

#5: Bright pink-red spinels

A very rare 10.5-carat Mahenge spinel from Tanzania

Image Credits: Arte Oro

As we come to a close, we have bright pink-red spinels to end us off this list. Spinels may not have been popular a few years back, but now, it’s a whole different story. With more buyers attracted to candy-coloured designer jewellery collections in recent years, spinel has climbed up the ranks to be considered investment-worthy.

Interestingly, it’s not the pure colourless spinel that is desired but the red, hot pink, and flame orange ones that are now in the spotlight. To be exact, neon pink-red spinels from Tanzania are the ones with tremendous investment potential, with prices up to US$50,000 per carat.

Now that you have an idea of what’s trending, do your due research and start collecting!

Read these 10 well-rated books if you want to be a millionaire

So, you want to be a millionaire? Sure! But first things first, make sure you’re not spending too much money way over your budget.

For folks looking to attain financial freedom, we recently wrote on some challenges to save more money which might be of powerful assistance. Some concepts, like the 1% trial or 52-week challenge, can be new ideas to try out.

Meanwhile, for today’s article, we will look into 10 well-rated books to read if you want to be a millionaire. Let’s roll with the titles!

#1: “The Simple Path to Wealth” by JL Collins

Most of us want to become millionaires. But the questions we may not know how to answer can include:

How do I get started with investing?
Why is debt a must-avoid, and what should I do if I’m heavily indebted?
Is it possible to use my money wisely and not gamble it away on fluctuating stocks?

Simple, engaging, and informative, this book delivers solid advice on investments, the stock market, and real-life implementation tips.

#2: “The Millionaire Fastlane” by MJ DeMarco

“The Millionaire Fastlane” is a straightforward guide to wealth generation written by a self-made entrepreneur who has learned from both his successes and his failures.

A fan of non-conservative approaches, DeMarco explores the theory that success is tied to effort. You are the vehicle, and the fuel, engine, etc., can be tailored to your specific route. The author’s advice is concise and valuable for those seeking to grow their wealth via the expressway.

#3: “The Bogleheads’ Guide to Investing” by Taylor Larimore, Michael LeBoeuf, and Mel Lindauer

Do you know what Bogleheads are? It’s a term referring to investing enthusiasts who hold fast to the investment advice of John Bogle, the founder of Vanguard and an investor advocate.

This guidebook provides the reader with straightforward investing and financial advice designed to help the average person profit from long-term wealth creation. This book also advises readers on how to survive economic downturns and keep their footing rooted.

#4: “The Richest Man in Babylon” by George S. Clason

More a parable than a textbook, Clason’s work revolves around the subject of thrifting, financial planning, and personal wealth.

The lessons presented in this bestseller are timeless and easy to follow. You will learn how to save, spend less than you earn, and make money earn more money through seven simple rules. If you want to know, start flipping.

#5: “The Intelligent Investor” by Benjamin Graham

Known as the father of value investing, Benjamin Graham was a well-known economist and professor whose students include legends such as Warren Buffet.

Readers of “The Intelligent Investor” will focus on learning the fundamentals of value investing. Graham teaches us how to guard our investments and make them successful.

If you want to avoid common investment pitfalls like channelling too much energy to the changing sentiments of the market, this book will do the trick. Updated by famous financial journalist Jason Zweig, this edition will keep Graham’s lessons appropriate for modern demands.

A must-read for any aspiring millionaire!

#6: “How to Win Friends and Influence People” by Dale Carnegie

What does winning friends and influencing people have to do with getting rich? Plenty!

To achieve success, one must learn to work with others. They could be your friends and family members, investment advisers, business partners, or even salespeople.

Nobody who aspires to become a millionaire can afford to ignore Carnegie’s advice on how to win people over with your way of thinking. The tips conveyed in this book will help you think in fresh ways and cultivate relationships that lead to unlocking your maximum potential.

#7: “Conscious Business” by Fred Kofman

The author explains the term conscious business as the practice of expressing your passion and values through your work.

Rather than blindly chasing after profits, the conscious business person leverages their values into helping business stakeholders attain happiness.

Kofman explains that business people who approach their work with integrity, responsibility, and genuine leadership are more likely to achieve personal and financial success beyond the workplace.

#8: “Secrets of the Millionaire Mind” by T. Harv Eker

“Secrets of the Millionaire Mind” concentrates on identifying internal traits that can lead to financial success.

Eker does that by identifying one’s money and success blueprint hidden deep within the subconscious mind. For those whose blueprints are not built for success, the author offers a chance to reset one’s mental patterns to improve the likelihood of financial triumph.

#9: “The Millionaire Mind” by Thomas J. Stanley

Peeps who are keen to explore further the interaction of mindset and wealth, Stanley’s writings can offer a glimpse into the millionaire’s headspace.

While many may assume that millionaires are well-connected graduates of prestigious schools who flaunt their wealth, the truth might be more surprising. Those who want clear road maps on how millionaires found their niches, look no further.

#10: “Think and Grow Rich” by Napoleon Hill

We will close our list with one of the classic books on wealth creation and financial success. Hill’s “Think and Grow Rich“ lets you in on money-making secrets inspired by Andrew Carnegie’s magic formula for success.

The book will share with you 13 steps towards riches. From the attainment of desire to influencing the subconscious mind and putting it into action, you will get the fortune you want if you’re ready to welcome it.