It’s natural for investors to seek safety during a crisis.
Blue-chip companies are one such source as they comprise companies that are large, well-capitalised and have a track record of weathering multiple crises.
But not all blue-chip companies are worth considering.
When it comes to picking quality blue-chips, you should look for those that have a strong competitive moat, a market-leading position within their industry, and a long runway for growth.
Be wary of companies that may look cheap at first glance, but represent value traps that should best be avoided.
Finding suitable blue-chip companies to invest in for your CPF account is important as the Ordinary Account (OA) only yields a low 2.5% interest rate, barely sufficient to beat inflation of around 3%.
Here are three solid blue-chip companies that are yielding more than what the OA offers.
Singapore Exchange Limited (SGX: S68)
Singapore Exchange Limited, or SGX, is Singapore’s sole stock market operator....