Top Investment Options in Singapore for Beginners

Top Investment Options in Singapore for Beginners

Investing in the right assets is essential, and when performed correctly, you can grow your wealth and receive a passive stream of income to guard against inflation risk. However, a wide range of investment schemes and products is available to investors in Singapore. You need to go in the right direction when you are making investments. In this guide, we look closely at Singapore's most popular types of investments and their benefits and risks. This way, you can use your securities for optimal gains.

Singapore Savings Bonds and Treasury Bills

The top option for traders in Singapore is Singapore Savings Bonds (SSBs), a type of Singapore Government Securities. SSBs are highly flexible and safe investments that would benefit individual investors in Singapore. Since the Singapore government backs the bonds and can be issued for up to 10 years, they are reliable assets to invest in.

One interesting fact about SSBs is that the interest rate increases each year. So, the longer you hold the bond, the higher your returns will be. SSBs are highly secure, so investors can rest assured that they will lose no capital. You can start investing in SSBs at a minimum of S$500 and exit this plan anytime; there are no penalties.

But there are some risks to consider. A major risk is having the Singapore dollar decline against your base currency, which leads to loss. Another challenge is having the interest rates go higher than the standard bank fixed deposits, especially if you sell the bond before its maturity date.

Exchange Traded Funds

Another popular option is Exchange-Traded Funds (ETFs), a type of investment security. One unique aspect of ETFs is that you can buy and sell them like stocks on a stock exchange. ETFs consist of stocks or bonds, which track different markets like commodities, domestic and international stocks, and bonds.

Investors in Singapore who want to build a diverse portfolio at an affordable price can consider ETFs, which have different risk levels and investment strategies. There are various ETFs in Singapore that you can consider, although it’s important to do your research before investing.

There are different types of ETFs depending on the industry in which you want to invest in Singapore. Consider CSOP iEdge Southeast Asia+ TECH Index ETF or Lion OCBC Securities Hang Seng Tech US$ for tech ETFs. The iShares MSCI Singapore ETF allows you to track the performance of the MSCI Singapore Index in different sectors, including healthcare.

The SPDR Gold Shares ETF is a popular option to invest in precious metals. Another one is the Aberdeen Standard Physical Silver Shares ETF. Before trading any ETF, consider using a tool like TradingView to analyze the ETF market.

Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) are also popular in Singapore. If you want to own a piece of real estate in the country, you can consider this asset. REITs are companies that own or finance income-producing real estate.

Singapore REITs are publicly traded on stock exchanges and can be purchased or sold anytime. It allows you to invest in real estate without directly buying the property. Your money and that of other investors are pulled together and invested in commercial real estate projects like apartment buildings, warehouses, hotels, and malls.

Singapore has the largest REIT market in Asia and is a global REIT hub, making this a suitable choice for investors wanting to grow and retain their wealth. Some popular Singapore REITs include Mapletree Logistics Trust, Keppel DC REIT, CapitaLand China Trust, and Frasers Logistics & Commercial Trust.

CPF Investment Scheme

The CPF investment scheme is a well-known investment option among investors in Singapore. It allows you to use your money to invest in different products simultaneously, including insurance products, fixed deposits, shares, bonds, and unit trusts.

You can invest from your ordinary or special accounts in different assets. You can withdraw your CPF savings as frequently as you want. But, it’s best to leave it undisturbed for risk-free growth.

Supplementary Retirement Scheme

Singaporeans also have the option to invest their money through the Supplementary Retirement Scheme, allowing them to set aside funds for the future. This voluntary scheme will enable you to deposit up to S$15,300 a year for retirement.

The SRS account reduces the amount you must pay on personal income tax. Although the interest rate is meager at 0.05% per annum, this happens only if you leave the money in the SRS account idle. You can invest your SRS funds in bonds, local fixed deposits, Singapore Government Securities, Singapore Savings Bonds, unit trusts, and more.


One of the most popular investment options worldwide and in Singapore is stocks. The Singapore Exchange is the main platform for trading stocks, as it features a wide range of trading services and facilitates transactions in equities, fixed income, currency, and commodities.

The benchmark for stocks on the Singapore Exchange is the Straits Time Index. This tracks the top 30 largest listed companies in Singapore. If you’re a beginner, you can join about 48.07% of Singaporeans who have investments in the stock market. It offers fairly consistent returns if your investments are based on research, but remember that all investments have risks. The Singaporean stock market is also limited since it is small compared to its global counterparts.

Make Trusted Investments in Singapore

If you’re looking to start investing in assets in Singapore, these are the popular options. Different options are based on your risk appetite and investment goals, from government-backed bonds and stocks to ETFs and REITs. Whenever you decide to start investing, always conduct extensive research before investing in any asset, and be prepared for risk. 

03 Apr 2024
Singapore Expats