Singapore is best known by investors for its participation in global trade as one of Asia’s largest trading hubs as the country offers good prospects for those who want to invest in a rising market in Southeast Asia. There are countless investment opportunities in Singapore that you can invest in, some are common like stocks, REITs, and ETFs whereas some are less familiar like bonds.

Exchange Traded Funds (ETFs)

ETFs which are exchange-traded funds gained popularity over recent years. They are the easiest way to invest in Singapore, as you gain access to the country in a single U.S.-traded security. They are also useful investment instruments for new investors who want stock diversification from smaller outlays.

Investors who are not trying to get higher returns than the underlying index suit ETFs. Since Singapore is mainly a trade spot, the exchange-traded fund is weighted towards financial (49.06%), real estate (22.97%), and industrial (11.14%) firms.

Mutual Funds

Moving on to mutual funds and unit trust funds, people usually get them confused as the same investment instrument. Mutual funds are investments made up of pooled money from investors, which hold various securities, like bonds, equities, money market instruments, and other assets. On the flip side, a unit trust fund is established under a trust deed, and the investor is effectively the beneficiary of the trust.

Mutual funds give small or individual investors access to diversified and professionally managed portfolios at a low price. They charge annual fees which are called expense ratios and, in some cases, commissions, which could affect overall returns. Unlike stock, mutual fund shares do not give its holders any voting rights. A share of a mutual fund represents investments in many different stocks (or other securities) instead of just one holding.

Unit Trust Funds

As for unit trust funds, common types of investments handled by unit trusts are properties, securities, mortgages, and cash equivalents while they provide access to a vast range of securities as well. Unit trusts are open-ended and are divided into units with different prices. An open-ended fund allows for new contributions and withdrawals to and from the pool. These prices directly influence the value of the fund’s total asset value. Whenever money is added to the trust as an investment, more units are made to match the current unit buying price.

Debt Investment

Another investment opportunity is debt investment, this form of alternative lending has been experiencing a steady shift to target the Southeast Asian market, with Singapore and Indonesia amongst the most mature players. Investors can invest by crowdfunding the business loans available on the platforms and potentially earn returns in the form of interests ranging in the mid to high single digits. Depending on the loan product, payouts can be done monthly so investors get their investments and returns within a shorter time frame.

Finally, you should definitely weigh out the pros and cons with caution before you decide to invest in Singapore. Economic lows are difficult to predict, even more so in emerging markets, as these markets tend to be a bit more risky than developed markets.

Source 1, 2, 3, 4, 5

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