Mutual funds allow people to pool their money together and invest in various assets, such as stocks, bonds, and other securities.
Most mutual funds are managed by professional money managers who use their expertise to choose which assets to buy and sell. It can help investors diversify their portfolios and access investments that they might not be able to buy on their own.
Many different types of mutual funds are available, so it’s essential to do your research before investing. Some common types of mutual funds include index funds, bond funds, and stock funds.
In Singapore, there are various mutual funds available for investors to choose from. Check over here to learn more about investing in mutual funds.
Fundsupermart SGD Savings Fund
Fundsupermart SGD Savings Fund is a mutual fund that invests in Singapore government bonds and other high-quality fixed-income securities.
Aberdeen Standard AsiaPacific Property Equities Fund
Aberdeen Standard AsiaPacific Property Equities Fund is a mutual fund that invests in a portfolio of listed real estate companies across the Asia-Pacific region.
First State Asian Equity Fund
First State Asian Equity Fund is a mutual fund that invests in a portfolio of companies listed on stock exchanges in Asia.
LionGlobal Disruptive Innovation Fund
LionGlobal Disruptive Innovation Fund is a mutual fund that invests in a portfolio of companies disrupting traditional business models.
NikkoAM-StraitsTrading Asia ex-Japan REIT Fund
NikkoAM-StraitsTrading Asia ex-Japan REIT Fund is a mutual fund that invests in a portfolio of real estate investment trusts (REITs) listed on stock exchanges in Asia, excluding Japan.
PhillipCapital Growth Fund
PhillipCapital Growth Fund is a mutual fund that invests in a portfolio of companies listed on stock exchanges in Asia.
Schroders Asian Total Return Fund
Schroders Asian Total Return Fund is a mutual fund that invests in a portfolio of stocks, bonds, and other securities across Asia.
UOBAM S&P Asia 50 Equity Fund
UOBAM S&P Asia 50 Equity Fund is a mutual fund that invests in a portfolio of the 50 largest companies by market capitalisation listed on stock exchanges in Asia.
Reasons to invest in a mutual fund
Diversification
Investors can diversify their portfolios across various asset classes, geographies, and sectors to help mitigate the risk of losses in any investment when investing in index funds, bond funds and mutual funds.
Professional management
Professional fund managers manage mutual funds with the knowledge and expertise to make investment decisions on behalf of investors. It can provide peace of mind for investors who do not have the time or resources to manage their portfolios.
Access to expertise
Mutual funds give investors access to the expertise of professional fund managers as well as the research capabilities of the fund house. It allows investors to benefit from the due diligence and analysis that goes into making investment decisions.
Liquidity
Mutual funds are relatively liquid investments, meaning they can be bought and sold on the open market. This liquidity allows investors to make changes to their portfolios as needed.
Affordability
Mutual funds offer investors the ability to invest in a wide range of assets without paying the total price of each security, making mutual funds an affordable investment option for many investors.
How to invest in mutual funds in Singapore
Decide on your investment objective
Before investing in a mutual fund, you must decide your investment objective. Are you looking to generate income, preserve capital, or grow your wealth over the long term?
Consider your risk appetite
Once you have decided on your investment objective, you should consider your risk appetite. How much are you prepared to risk in pursuing your investment objective?
Research different mutual funds
There are many different mutual funds available for investors to choose from. You can research mutual funds online or consult a financial advisor for recommendations.
Open a brokerage account and make your purchase
Once you have decided on which mutual fund you would like to invest in, you will need to open a brokerage account with a licensed financial institution to make your purchase.
Monitor your investment
Once you have made your investment, it is essential to monitor the fund’s performance on an ongoing basis. It will allow you to make changes to your investment if necessary.