What Can Beginners Invest In Singapore?
The main options for beginners in Singapore are shares and ETFs on SGX or overseas exchanges, REITs, Singapore Savings Bonds and T-bills, unit trusts and robo-advisor portfolios, plus CPF-IS and SRS for CPF and retirement savings. Individuals pay no capital gains tax on ordinary investment gains. If you want a person to look at your whole financial picture first, see our guide to financial planners in Singapore.
Why Invest in Singapore?
Tax Advantages
- • No capital gains tax for individuals
- • No dividend tax on Singapore stocks
- • Tax-efficient structures like SRS available
- • Double taxation treaties with many countries
Market Access
- • Gateway to Asia - access to regional growth
- • Stable financial system with strong regulation
- • Multiple exchanges - SGX, international markets
- • Strong Singapore Dollar as base currency
Investment Fundamentals
Core Investment Principles
Start Early, Invest Regularly
Time in the market beats timing the market. Consistent monthly investments of $500-1000 can grow to substantial sums over 20-30 years.
Diversify Your Holdings
Don't put all eggs in one basket. Spread investments across asset classes, sectors, and geographies to reduce risk.
Keep Costs Low
High fees compound over time. Focus on low-cost index funds, ETFs, and minimize trading frequency.
Singapore Stock Market Overview
The Singapore stock market is the Singapore Exchange (SGX), which lists several hundred companies across banking, real estate, telecommunications and other sectors, and its main index is the Straits Times Index (STI).
Key Market Indices
Straits Times Index (STI)
Singapore's benchmark index comprising the 30 largest companies by market cap. Represents about 80% of total market capitalization.
Largest STI components (approximate weights, change over time):
- • DBS Group (Banking) - ~15%
- • Oversea-Chinese Banking Corp - ~12%
- • United Overseas Bank - ~10%
- • Singapore Telecommunications - ~8%
- • CapitaLand Investment - ~6%
Sector Breakdown:
Other Important Indices
FTSE ST Small Cap
Smaller companies with growth potential but higher volatility.
FTSE ST Mid Cap
Medium-sized companies offering balance between growth and stability.
FTSE ST All-Share
Broad market exposure including large, mid, and small-cap stocks.
Market Characteristics & Trading Hours
Trading Information
- • Trading Hours: 9:00 AM - 5:00 PM SGT
- • Settlement: T+2 (trade date plus 2 days)
- • Minimum Lot Size: 100 shares (varies by stock)
- • Currency: Singapore Dollar (SGD)
Market Features
- • Dividend Yields: 3-6% average for STI stocks
- • Market P/E Ratio: ~12-15x (historically attractive)
- • Liquidity: High for blue chips, lower for small caps
- • Volatility: Lower than regional peers
Which Investment Account Do You Need in Singapore?
To buy shares in Singapore you need a brokerage account, which holds SGX shares either in your own CDP account or with the broker as custodian. Local and international brokers differ in fees, markets offered and how your shares are held.
Examples of Brokers Used in Singapore
DBS Vickers
Fees
- • SGX: 0.28% (min $25)
- • US: 0.50% (min $25)
- • No account maintenance
Features
- • Strong research reports
- • Multiple markets access
- • Mobile app trading
Suited To
- • Long-term investors
- • Research-oriented traders
- • Multi-market access
Tiger Brokers
Fees
- • SGX: $1.99 per trade
- • US: $1.99 per trade
- • No account maintenance
Features
- • Low flat-rate pricing
- • Fractional shares
- • Advanced charting
Suited To
- • Active traders
- • Small account sizes
- • US market focus
Interactive Brokers
Fees
- • SGX: 0.08% (min $2.50)
- • US: $0.005/share (min $1)
- • no inactivity fee (Interactive Brokers, Oct 2026)
Features
- • Per-trade costs fall as trading volume rises
- • 150+ markets worldwide
- • Professional platform
Suited To
- • Large portfolios ($100k+)
- • Global diversification
- • Advanced traders
Account Types
Cash Account
- • Requirement: Full payment for purchases
- • Risk: Limited to invested amount
- • Suited to: Beginners and conservative investors
- • Settlement: T+2 for SGX trades
Margin Account
- • Requirement: Minimum $40,000 typically
- • Risk: Potential losses exceed initial investment
- • Suited to: Experienced investors only
- • Interest: 4-8% annually on borrowed funds
What Is an STI ETF?
An STI ETF is an exchange-traded fund that tracks the Straits Times Index of 30 large SGX-listed companies, so one purchase spreads your money across all of them and pays their dividends. It is a common starting point for Singapore investors, though it is concentrated in banks and property.
STI ETF Options Comparison
| ETF | Expense Ratio | Dividend Yield | AUM | Notes |
|---|---|---|---|---|
| SPDR STI ETF (ES3) | 0.30% | 4.2% | $1.2B | Larger of the two STI ETFs |
| Nikko AM STI ETF (G3B) | 0.30% | 4.1% | $400M | Alternative option |
| Individual STI Stocks | 0% (brokerage only) | 3-8% | N/A | Active stock pickers |
STI Investment Strategies
Dollar-Cost Averaging
Invest a fixed amount (e.g., $1,000) monthly regardless of market conditions. This reduces timing risk and builds discipline.
Example: $1,000 monthly into STI ETF
Average cost: $3.17/unit vs trying to time the market
Lump Sum Investing
Invest available capital immediately. Historically outperforms DCA about 60% of the time due to market's upward bias, but requires emotional discipline during downturns.
Value Averaging
Advanced strategy where you adjust investment amounts to maintain a target portfolio growth rate. Requires more active management but can improve returns.
STI vs Individual Stock Selection
STI ETF Advantages
- • Instant diversification across 30 companies
- • No need to research individual stocks
- • Automatic rebalancing
- • Lower brokerage costs (one trade vs 30)
- • Consistent dividend payments
Individual Stock Advantages
- • Potential to outperform index
- • Higher dividend yields possible
- • Can avoid companies you dislike
- • More control over portfolio
- • Learning opportunity
Singapore REITs Guide: Passive Income Generation
A Singapore REIT is a listed trust that owns income-producing property and pays out most of its income as distributions, so you can invest in property for the price of one share lot. REIT prices and distributions still rise and fall with rents, interest rates and property values.
Why Singapore REITs?
Income Benefits
- • High dividend yields: 5-8% annually
- • Quarterly distributions: Regular income stream
- • No dividend tax: For Singapore REITs
- • Mandatory distribution: 90% of income must be paid out
Diversification Benefits
- • Property exposure: Without direct ownership
- • Professional management: Expert property managers
- • Geographic diversification: Regional exposure
- • Sector variety: Retail, office, industrial, healthcare
Examples of Large SGX-Listed REITs
Examples only; this is not a suggestion to buy any of them. Yields and market capitalisations change daily; check current figures on SGX before relying on them.
CapitaLand Integrated Commercial Trust (C38U)
Type
Retail & Office
Dividend Yield
6.2%
Market Cap
$13.8B
Key Properties
Raffles City, Bugis Junction
Mapletree Logistics Trust (M44U)
Type
Industrial/Logistics
Dividend Yield
7.1%
Market Cap
$8.2B
Geographic Focus
Asia-Pacific
CapitaLand Ascendas REIT (A17U)
Type
Business Parks/Industrial
Dividend Yield
5.8%
Market Cap
$9.1B
Tenant Quality
High-grade corporates
REIT Investment Considerations
Risk Factors to Consider
Interest Rate Risk
REITs are sensitive to interest rate changes. Rising rates can reduce REIT prices as investors shift to bonds and increase borrowing costs.
Property Market Risk
Economic downturns can affect occupancy rates, rental income, and property values.
Mitigation Strategies
- • Diversify across REIT sectors
- • Focus on quality properties and locations
- • Consider geographic diversification
- • Monitor debt levels and gearing ratios
Which Bonds Can You Buy in Singapore?
Retail investors in Singapore can buy Singapore Savings Bonds, Treasury bills and Singapore Government Securities, retail corporate bonds listed on SGX, and bond ETFs or funds. Bonds pay regular interest and are usually less volatile than shares.
Types of Bonds Available
Singapore Savings Bonds (SSB)
Features
- • Backed by the Singapore Government
- • Step-up interest rates
- • No default risk
- • Monthly application
Rates
SSB rates are set for each monthly issue and change from month to month. Check the current issue on the MAS website: mas.gov.sg/bonds-and-bills/singapore-savings-bonds
Limits & Access
- • Max $200,000 per person
- • Min $500 investment
- • Early redemption allowed
- • No penalty fees
Corporate Bonds
Usually higher yields than government bonds, but with credit risk. Singapore issuers include banks, property groups and conglomerates. Yields depend on the issuer, tenor and market conditions at the time you buy.
Bond ETFs
Diversified bond exposure through ETFs. Examples include the ABF Singapore Bond Index Fund and various global bond ETFs.
ABF Singapore Bond (A35)
- • Tracks Singapore government bonds
- • Low expense ratio: 0.25%
Global Bond ETFs
- • Geographic diversification
- • Currency exposure considerations
- • Higher management fees
Bond Ladder Strategy
A bond ladder involves buying bonds with different maturity dates to manage interest rate risk and provide regular income.
Illustrative 5-Year Bond Ladder ($50,000)
As bonds mature, reinvest proceeds in new 5-year bonds to maintain the ladder. The yield on each rung depends on rates when you buy it. SSBs can be redeemed in any month, so they work differently from fixed-maturity bonds in a ladder.
Robo-Advisors in Singapore: Automated Investing
A robo-advisor is an online platform that builds and rebalances a diversified portfolio for you, usually for a lower annual fee than a traditional adviser. The trade-offs against a human adviser are set out in robo-advisor vs financial adviser in Singapore.
Robo-Advisors Available in Singapore (examples only)
StashAway
Fees
- • 0.8% a year on the first $25,000, falling to 0.2% above $1m (StashAway, Oct 2026)
- • No minimum balance
Features
- • Goal-based investing
- • Automatic rebalancing
- • SRS account support
Portfolios
- • 36% equity allocation (conservative)
- • 75% equity allocation (aggressive)
- • Thematic portfolios available
Suited To
- • Beginners
- • Goal-based savers
- • Hands-off investors
Syfe
Fees
- • 0.25% to 0.65% a year (Syfe, Oct 2026)
- • $1 minimum to start
- • Transparent fee structure
Features
- • Core portfolios
- • Thematic investing
- • Dollar-cost averaging
Portfolios
- • Equity100 (100% stocks)
- • Core portfolios (mixed)
- • REITs+ portfolio
Suited To
- • Young investors
- • Thematic investors
- • Small account sizes
Endowus
Fees
- • 0.15% to 0.60% a year (CPF/SRS 0.40%), minimum S$1,000 (Endowus, Oct 2026)
- • All-in fee structure
Features
- • CPF investing platform
- • Institutional funds access
- • Goal-based planning
Portfolios
- • Flagship portfolios
- • Satellite strategies
- • Factor-based investing
Suited To
- • CPF optimization
- • Higher net worth
- • Professional portfolios
Robo-Advisor vs DIY Investing
Robo-Advisor Benefits
- • Professional portfolio management
- • Automatic rebalancing
- • Diversification across asset classes
- • Behavioral coaching (reduces emotion)
- • Goal-based planning tools
DIY Investing Benefits
- • Lower costs (no management fees)
- • Full control over investments
- • Learning opportunity
- • Customization flexibility
- • Direct ownership of assets
- • No minimum investment amounts
Should You Invest Your CPF Through CPF-IS?
The CPF Investment Scheme lets you invest Ordinary Account savings above a minimum balance in approved investments, but it only pays off if your returns beat the 2.5% the OA already earns (CPF Board, Oct 2026) . Money left in CPF can also earn extra interest; see our CPF optimisation strategies.
CPF-IS Basics
Investment Limits
- • OA limit: 100% above $20,000
- • SA limit: 100% above $40,000
CPF Interest Rates
- • OA rate: 2.5% per annum (CPF Board, Oct 2026)
- • SA rate: at least 4% per annum (floor) (CPF Board, Oct 2026)
- • Extra interest: on the first $60,000 of combined balances (OA counts up to $20,000), giving total rates of up to 5% (under 55) or 6% (55 and over) (CPF Board, Oct 2026)
- • Benchmark your CPF-IS investments must beat after fees
Approved Investment Options
Unit Trusts & ETFs
ETF Examples
- • SPDR STI ETF (ES3)
- • Nikko AM STI ETF (G3B)
- • ABF Singapore Bond (A35)
- • Various global ETFs
Unit Trust Benefits
- • Professional management
- • Regular savings plans available
- • Wide variety of funds
- • Some offer CPF-specific classes
Considerations
- • Must beat CPF floor rates
- • Sales charges may apply
- • Annual management fees
- • Market risk involved
Individual Stocks
Can invest in approved Singapore stocks, but requires careful selection and monitoring. Higher risk but potential for higher returns.
Stock Selection Criteria:
Fixed Deposits & Bonds
Conservative options including bank fixed deposits, Singapore Government Securities, and statutory board bonds. Lower risk but modest returns.
Illustrative CPF-IS Allocations by Age
Age-Based Allocation Strategy
Ages 25-35: Growth Focus
OA Allocation:
- • 70% Global equity ETFs
- • 20% STI ETF
- • 10% Bonds/conservative
SA Strategy:
- • Keep in SA (earns at least 4%)
- • OR aggressive growth funds
- • Long investment horizon
Ages 36-45: Balanced Approach
OA Allocation:
- • 50% Equity funds/ETFs
- • 30% Balanced funds
- • 20% Bonds/fixed income
SA Strategy:
- • Conservative growth funds
- • OR stay in SA (earns at least 4%)
- • Start de-risking approach
Ages 46-55: Conservative Focus
OA Allocation:
- • 30% Equity exposure
- • 40% Balanced/income funds
- • 30% Bonds/FDs
SA Strategy:
- • Preserve capital approach
- • Consider staying in SA
- • Focus on retirement adequacy
How Do You Build a First Investment Portfolio?
A first portfolio is usually built by splitting money between shares, bonds and cash according to how much risk you can bear and how long you can invest, then adding to it regularly. The sample allocations below are illustrations, not advice; a fee-only financial adviser can review your own situation.
Sample Portfolio Allocations
Conservative Portfolio (Low Risk, Age 45+)
Asset Allocation
Expected Returns & Characteristics
- • Expected return: 4-6% annually
- • Volatility: Low to moderate
- • Income focus: High dividend and coupon payments
- • Often used by: Risk-averse, near retirement
- • Review frequency: Annually
Balanced Portfolio (Moderate Risk, Age 30-45)
Asset Allocation
Expected Returns & Characteristics
- • Expected return: 6-8% annually
- • Volatility: Moderate
- • Growth & income: Balanced approach
- • Often used by: Mid-career professionals
- • Review frequency: Semi-annually
Growth Portfolio (High Risk, Age 25-35)
Asset Allocation
Expected Returns & Characteristics
- • Expected return: 8-12% annually
- • Volatility: High
- • Growth focus: Capital appreciation priority
- • Often used by: Young investors, long time horizon
- • Review frequency: Quarterly
Portfolio Implementation Steps
Determine Your Risk Tolerance
Consider your age, income stability, investment experience, and emotional comfort with volatility.
Set Investment Goals
Define specific goals (retirement, house purchase, children's education) with timelines and target amounts.
Start with Core Holdings
Begin with STI ETF and global index funds before adding REITs, bonds, and individual stocks.
Implement Dollar-Cost Averaging
Set up regular monthly investments to build your portfolio systematically and reduce timing risk.
Review and Rebalance
Monitor your portfolio quarterly and rebalance annually or when allocations drift significantly from targets.
How Are Investments Taxed in Singapore?
Singapore does not tax individuals on capital gains or on Singapore company dividends, but IRAS can tax gains as income if you trade frequently, and foreign dividends can be taxed at source. SRS contributions also earn tax relief, covered below.
Singapore Tax Advantages
No Capital Gains Tax
- • Individual investors: No tax on investment gains
- • Trading vs investing: IRAS can tax gains as income if you are trading (for example, frequent short-term buying and selling)
- • Property exception: Seller's Stamp Duty on some property sales
- • Global advantage: One of few countries with this benefit
Dividend Tax Treatment
- • Singapore stocks: No additional tax on dividends
- • Foreign dividends: May be subject to withholding tax
- • Tax treaties: Reduced rates for many countries
- • REITs: Distributions generally not taxable
Tax-Advantaged Accounts
Supplementary Retirement Scheme (SRS)
Contribution Limits
- • Singaporeans/PRs: $15,300 (IRAS, Oct 2026)
- • Foreigners: $35,700
- • Annual contribution limits
- • Tax deduction available
Investment Options
- • Unit trusts and ETFs
- • Stocks and bonds
- • Fixed deposits
- • Insurance products
Withdrawal Rules
- • Statutory retirement age 64 if your first contribution is on or after 1 July 2026 (fixed at the age that applied when you first contributed) (IRAS, Oct 2026)
- • 50% of withdrawals taxed after that age (IRAS, Oct 2026)
- • 10-year withdrawal period
- • Early withdrawals: 100% taxable plus a 5% penalty (IRAS, Oct 2026)
CPF Investment Scheme Tax Benefits
Investment gains within CPF accounts are not subject to tax, making it an effective tax-sheltered growth vehicle for retirement planning.
Key Benefits:
Foreign Investment Tax Considerations
Withholding Tax on Foreign Dividends
Common Withholding Tax Rates (examples; rates depend on the country and treaty)
Developed Markets
Emerging Markets
Note: Withholding tax is typically deducted at source and cannot be recovered. Singapore has no comprehensive tax treaty with the US, so Singapore residents holding US shares directly pay 30% on US dividends. Funds domiciled in Ireland (UCITS) generally suffer 15% on US dividends inside the fund under the US-Ireland treaty.
Tax-Efficient Investment Strategies
Maximize Singapore Investments
Prioritize Singapore stocks, REITs, and bonds to take advantage of favorable tax treatment and avoid foreign withholding taxes.
Use Tax-Efficient ETF Structures
Ireland-domiciled (UCITS) ETFs can reduce US dividend withholding from 30% to 15% at the fund level. Accumulating ETFs reinvest dividends instead of paying them out.
Optimize Account Allocation
SRS contributions reduce your taxable income in the year you contribute. Foreign withholding tax still applies to dividends earned inside SRS, so holding foreign stocks in SRS does not avoid it.
Frequently Asked Questions
How much should I invest monthly as a beginner?
Start with 10-20% of your monthly income after building an emergency fund. If you earn $5,000 monthly, aim for $500-1,000 in investments. The key is consistency rather than amount.
Should I invest in CPF-IS or regular brokerage account first?
Start with a regular brokerage account for flexibility and learning. Once you have $50,000+ in CPF and understand investing basics, consider CPF-IS for tax-efficient growth.
What's the minimum amount needed to start investing in Singapore?
You can start with as little as $100 using robo-advisors or $1,000 for direct ETF purchases. Most brokers have no minimum account balance, but consider transaction costs for small amounts.
Is it better to invest lump sum or dollar-cost averaging?
For beginners, dollar-cost averaging reduces timing risk and builds discipline. If you have a large sum and strong emotional discipline, investing it at once has historically tended to do better, because markets have risen more often than they have fallen.
How often should I review my investment portfolio?
Review quarterly but avoid making frequent changes. Rebalance annually or when your allocation drifts more than 5% from target. The key is staying disciplined and avoiding emotional decisions.
Related Financial Planning Guides
CPF Optimization Strategies
Maximize your CPF returns while building your investment portfolio
Insurance Planning Guide Singapore
Protect your investment portfolio with proper insurance coverage
Tax Planning Strategies Singapore
Minimize taxes on your investment gains and optimize SRS contributions
HDB vs Private Property Investment
Compare real estate vs stock market investment strategies
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