Understanding the Range of Investment Options
When you begin exploring investments, the options are plentiful: shares, bonds, unit trusts, exchange-traded funds (ETFs), and real estate investment trusts (REITs). Before committing a cent, it helps to get a clear-eyed overview of every major investment product available in Singapore.
Shares and Bonds
Shares and bonds are two fundamental asset classes. Examples of how they are issued include Initial Public Offers (IPOs) for ordinary shares and tenders for government bonds. Different asset classes such as shares, ETFs, and REITs are listed on the exchange. For bonds, one notable example in Singapore is the Singapore Savings Bonds (SSBs).
Unit Trusts and ETFs
Unit trusts are another common investment product. It is also useful to understand how ETFs track indices and their liquidity advantages, and how they compare to unit trusts in Singapore.
Frequently Asked Questions
What are the main types of investments?
The main types include shares, bonds, unit trusts, ETFs, and REITs.
Where are shares, ETFs, and REITs traded?
They are listed on the exchange.
What is an example of a government bond?
Singapore Savings Bonds (SSBs) are one example.
How do ETFs compare to unit trusts?
ETFs track indices and offer liquidity advantages; they can be compared to unit trusts in Singapore.