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
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.
ReplyDeleteVisit the Business centre.
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.
ReplyDeleteIf short term interest rate increases, you may suffer a lower yield on your flexicash for the period that you have invested.
ReplyDeleteBut this is temporary. If you wait for one year, the return should be better than 2%.