You’ve probably heard of the Straits Times Index (STI), our local Singapore Stock Index. Basically, it’s a benchmark index that tracks the Top 30 companies in Singapore.
And if you were to buy an index fund like an STI ETF, some benefits include:
Lower cost of entry (Investing in one lot of STI ETF is more affordable than investing separately in 30 different companies) Need not actively monitor
I think that investing in an STI ETF is a good starting point for beginner investors, and a regular shares savings plan makes it even easier to grow our capital, especially when we do not have time to actively monitor the market.
But if you want to:
Diversify your investments Try your hand in the international market, and Stick to index funds