How to Start Investing in Singapore with S$1,000

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Investment Options for Beginners

Here are the best ways to start investing in Singapore with your first S$1,000.

Build a Portfolio of Dividend Stocks

Allocate your S$1,000 to dividend-paying stocks for long-term investments. Singapore’s market offers established companies known for consistent dividend payouts, particularly in sectors like REITs and banking. These dividend stocks offer both regular income and potential growth, making them ideal for new investors.

Exchange-Traded Funds (ETFs)

ETFs allow you to invest in a diverse range of stocks or bonds through a single fund. Think of it as a “basket” of investments. For example, the Straits Times Index ETF tracks the 30 largest companies listed in Singapore. ETFs are low-cost and an excellent choice for beginners seeking diversification.

Regular Savings Plan

Regular savings plans, offered by banks like DBS, allow you to invest a fixed amount each month in ETFs or unit trusts. This approach, known as dollar-cost averaging, helps mitigate the risk of market volatility by spreading out your investments over time. You may start investing via regular savings plan from as little as S$100 a month.

4. Singapore Savings Bonds

If you prefer a lower-risk option, Singapore Savings Bonds are a great way to earn steady returns. They’re fully backed by the Singapore government, with attractive interest rates over 10 years. The minimum investment amount for Savings Bonds is S$500.

Practical Investment Steps

Knowing where to invest is crucial, but understanding how to start investing is equally important. Here’s a simplified step-by-step guide to get you moving.

Step 1: Choose an Investment Platform

Select a platform that suits your needs. The platforms for Singapore investors include:

Step 2: Open an Account

Most platforms offer quick and seamless account setup. You’ll typically need identification documents (e.g., NRIC or passport) and proof of residence. Online options mean you may not even need to leave your home.

Step 3: Start Simple with Diversification

Instead of putting your entire S$1000 into one stock, spread your investment across different asset classes such as index funds and bonds. This diversification reduces your risk exposure.

Get Smart

Successful investing goes beyond financial mechanics — it’s about cultivating the right mindset and habits. Set realistic expectations by understanding that investing is a gradual process of building wealth, not a get-rich-quick scheme.

Learn fundamental market terms like compounding, dividends and volatility. Many investment platforms offer free educational resources to help you get started.

First-time investors: We’ve finally released our Beginner’s Guide. Read it in an afternoon, follow the principles, pick an investing style and buy your first SGX stocks within the next few hours! Click here to download it for free.

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