Thoughts of diversifying your money // Bonds is the safest instrument

What you should know before making this decision?

1. Does it beat inflation rate? (5 Yrs average – 3.12%)

   Focus Economics

2. The best/safest bond (3 Options)
   • Singapore Savings Bond

     Singapore Savings Bond

     • Average return per year is 2.32% / Doesn’t beat inflation
   • Index

     ABF Bond Index Factsheet

     • Average return per year is 2.65% (Not including growth rate) / 3.65% is its actual return (Including growth rate) / Beat inflation
   • Open Market (SGX)

     Sgx.com

     • Higher chance to default / Beat inflation
3. Your opportunity cost

Average yearly return is at 11.48%  // Alternative is SPDR (another ETF of STI) – 7.28% 

ConCRUsion

You should invest into an instrument that beats the inflation rate (3.12%) or else it makes no sense to even invest. ...