Tuesday, August 07, 2007

How to get a higher return

Dear Mr Tan

I have a large sum of money to invest. Bank deposit pays only 1.7%. If I lock up in a government bond for 5 or 10 years, I only get about 2.7% per annum. This is too low for me. Is it safe to invest in the stockmarket at this time?

REPLY

I suggest that you read my FAQs. Choose one that is relevant to your situation.

If you are invested for the next 10 years or more, it is better to invest in a exchange traded fund (like the STI ETF), or in a low cost investment fund (like the combined fund from NTUC Income). There may be other suitable funds or investments. You can talk to an adviser.

If the stockmarket corrects further and reaches a lower level, it will be a good time for you to make a long term investment. You can read my FAQ about how to manage risk and get a better return.
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2 comments:

Anonymous said...

No pain no gain and that is the name of this game. Consult a qualified
financial planner to put together a portfolio with lesser pain and yet more gain. Is it possible? Yes, if you can get the right adviser or planner.

August 07, 2007 4:26 PM
Anonymous said...

is it time to put some money in the global equity fund or growth fund of NTUC yet?

August 07, 2007 8:51 PM

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