An Overview of Investment Options
When you start investing, the options are plentiful: shares, bonds, unit trusts, ETFs, and REITs. Before committing a cent, it helps to get a clear-eyed overview of every major investment product available in Singapore.
For example, initial public offers (IPOs) are one way ordinary shares are offered, while government bonds may be issued through tenders. Different asset classes such as shares, exchange-traded funds (ETFs), and real estate investment trusts (REITs) are listed on the exchange.
Singapore Savings Bonds (SSBs) are another option, and the Government of Singapore is the issuer.
Income, Capital Gains, and Diversification
Different investments can generate income, capital gains, and provide diversification. For instance, shares and bonds can produce income, while selling an asset at a higher price can yield capital gains. Diversification comes from holding a mix of asset classes like shares, bonds, and unit trusts.
Unit trusts pool money from many investors to buy a portfolio of assets, offering diversification. ETFs are similar but trade on the exchange like shares, with liquidity advantages. Understanding how ETFs track indices and how they compare to unit trusts in Singapore can help you decide which fits your goals.
Frequently Asked Questions
What are some examples of investment products available in Singapore?
Shares, bonds, unit trusts, ETFs, and REITs are examples of investment products listed or available in Singapore. Initial public offers (IPOs) are one way ordinary shares are issued, and government bonds may be offered through tenders.
What are Singapore Savings Bonds?
Singapore Savings Bonds (SSBs) are a type of investment product, and they are issued by the Government of Singapore.
How do ETFs compare to unit trusts?
ETFs track indices and offer liquidity advantages, and in Singapore, it is useful to understand how they compare to unit trusts.