Saturday, November 24, 2007

Investment horizon

Hi,

I have some saving to invest. I am undecided about investing in shares or putting them in foreign fixed deposit. Which can give a better return for an investment of at least one year?

REPLY

If you are investing for 10 years or more, it is better to invest in a low cost, large, well diversified equity fund.

Read this FAQ:
http://www.tankinlian.com/faq/returns.html

If you are investing for the short term and is not familiar with the investment market, it is bettter to put your money in a fixed deposit in local currency to earn 2% or to buy government bonds to earn slightly more than 2%.

If you wish to invest in fixed deposit in foreign currency, read this FAQ
http://www.tankinlian.com/faq/foreign.html
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3 comments:

Anonymous said...

One year time frame, best place to "invest' is into the Flexicash money market by NTUC. You MAY get 3% but good chance of getting 2.3%. It is better than FD. No lock in and liquid.
Visit the Business centre.

November 24, 2007 5:34 PM
Anonymous said...

For flexicash, if you bought at the wrong time and price, after 6months the return is still less than 2% for >$50K. Worse than short term S$ bank FD. I should know as I have learnt my lesson. So don't always think it is better than FD.

November 25, 2007 10:57 AM
Tan Kin Lian said...

If short term interest rate increases, you may suffer a lower yield on your flexicash for the period that you have invested.

But this is temporary. If you wait for one year, the return should be better than 2%.

November 25, 2007 4:28 PM

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