Diversification of the index fund

The shipyards in Singapore are going through a difficult time. The shipping lines are similarly affected. The shares of companies in these sectors have dropped a lot. But the Straits Times Index is still holding above 2800.

This is the power of diversification of the index fund. While some shares perform badly, the other shares are doing well. The index fund is still showing an overall gain.

Learn about investing in the index fund, namely the STI ETF, in this short video.
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