Investment Archives | Page 4 of 19

6 Essential Reasons Why You Should Learn To Invest

Investing is the act of allocating your money in the hopes that you will achieve a profit in the future. The money generated from your investments can provide income and fulfillment of long-term financial security.

Now is the ideal time to start investing! Allow me to convince you with these “6 Essential Reasons Why You Should Learn To Invest”.

#1: WORK SMARTER, NOT HARDER

Many people do not think about investments until they are well into their 20s or 30s. Although opportunities to invest may come before that, investing is not something that is automatically embraced by all. Do not panic! You can become an investor at any age.

The sooner you open an investment account, the better it will be for your financial future. Take advantage of the greatest asset of all – time. Investing while you are young gives you the chance to work smarter. Would you rather save a considerable amount of money every year or save a huge amount of money later in life? Think about that.

#2: GET MORE EARNING POTENTIAL

Investing your money allows you to grow your wealth. Most investment vehicles such as stocks and bonds offer returns on your money over the long run. The return allows your money to build over time.

The money you build can be used to create a business or expand your existing one. Many investors support entrepreneurs and contribute to the creation of new products and new jobs. The more successful entities you have backed up, the stronger your returns will be.

#3: SAVE FOR RETIREMENT

Let us face it! You need to be prepared for your retirement. You should save money for retirement as you are working. You can put your retirement savings into a portfolio of diversified assets such as real estate, precious metals, stocks, mutual funds, and bonds. As soon as you retire, you will be able to live off from the funds that you have earned.

Base your personal tolerance of risk on your age and lifestyle. You may employ greater risks to increase your chances of earning greater wealth in your younger years. Becoming more conservative with your investments as you grow older can be wise.

#4: POWER OF COMPOUND INTEREST

Learning about investments will enable you to know the power of compound interest. Compound interest allows your money to make more money for you. It pays to invest early and often. The longer your money can benefit from the power of compound interest, the higher your gains will be as time goes by.

Say you invest S$1,000 this year and you earn a 10% return on that. This means that you will end up having S$1,100. If you do not contribute anything next year, you will still make money through the compound interest. Instead of earning another S$100, you will earn S$110 because you are getting 10% from a balance of S$1,100. You will have S$1,210 by the end of next year.

#5: DIVERSIFY YOUR ASSETS

You need to diversity your assets as your investments make one part of your financial picture – not all of it. You should not keep all your money in cash, in your house, or in your car. Instead, invest in a variety of categories to cushion unforeseen losses. It makes more financial sense to keep your emergency fund, your house (real estate), your hard assets (e.g., car), and your portfolio of investments.

#6: REACH YOUR FINANCIAL GOALS

Image credits: pixabay.com

Learning how to strategically invest your money allows you to reach your financial goals. If your money is earning a higher rate of return than your savings account, you will be able to earn more money within a faster period. This return on your investments can help you reach your financial goals such as buying a car, starting your own business, or putting your children through university.

Sources: 1 & 2

How Everest Gold Compares Most Favourably Amongst Various Platforms for Gold Investments

Gold prices have been on an amazing run in 2020. It has surged from USD 1,550 to reach USD 1,800 (Source: goldprice.org) in November 2020. Increasingly, investors also recognise the importance of having gold in their portfolios. When it comes to gold investments, investors are spoilt for choice since there are various platforms available in the market. We researched across the various platforms to determine the most cost-effective and efficient way of investing in gold.

Comparison of Various Platforms for Gold Investments

Here is a comparison of the common platforms available for gold investments on key metrics such as transaction fee, storage fee, etc.

Everest Gold

Everest Gold’s digital trading platform is the first-of-its-kind to introduce real gold bullions broken down into digital gold units called Everest Gold Units (EGUs), that allows gold investors to trade from as low as 0.01grams. Every EGU is 100% backed by real gold and matched on a 1:1 basis. Investors can accumulate their EGUs and exchange them for physical gold.

The minimum capital to trade starts from USD 0.60, the equivalent of 1 EGU, making it highly affordable for everyone. Moreover, its users enjoy fairer prices without paying high premiums commonly levied by retail banks. Fees are non-existent since there is no transaction fee and storage fee. The combination of no fees and fair price offers investors the chance to maximise their profits. This stands in steep contrast to transaction and storage fees typically charged by retail banks and bullion dealers.

Everest Gold platform is also highly accessible and allows investors to trade gold 24/7 on the mobile app. Such instantaneous liquidity is another attribute not usually offered by traditional retail banks and bullion dealers.

Everest Gold is available for download on Android, iOS and accessible from desktop.

For more information, visit https://everestgold.sg

The Power Of Branding

Starbucks is not the best coffee in the country, but a cup of their coffee or two can make a person happy. Toyota is not making everyone’s dream car, but it is known to be safe and reliable. Apple iPhones are not the most advanced phones in the market. However, people clamor for its new releases. Carrying an iPhone became a status symbol. These situations highlight the power of branding.

WHAT IS A BRAND?

A brand is more than just a name! It is a culmination of a consumer’s experiences with a recognizable product. Branding makes your products stand out from the rest. With the right strategies, a brand is powerful and can often lead to competitive advantage. You see, a brand develops loyalty among consumers. People are more willing to pay more for their preferred brands.

WHAT IS A LOGO?

A logo is the pictorial persona attached to the brand. It is one of the key elements that help build a trustworthy relationship between the product/service and the target audience themselves. A good logo is memorable, functional, and meaningful. Your logo must reflect the concept of your products or services. Moreover, the logo must include both the visual and conceptual values of the brand.

If a logo is not memorable, the consumers can dissociate it with the brand. For instance, we all know that a big checkmark is associated with Nike and its slogan: “just do it”. Design and branding consultants can help you develop an efficient way to communicate your brand to your target audience. This includes logo design.

HOW CAN INVESTORS PUT VALUE ON A BRAND?

Although brands are valuable to companies, brands are still considered among the intangible assets. Investors can put value on a brand by using these three main approaches.

#1: CALCULATE THE BRAND EQUITY OF A COMPANY

One of the simplest ways to put a value on a brand is to calculate the brand equity of a company. Take a firm’s enterprise value and subtract the tangible assets and intangible assets that can be identified (e.g., patents).

#2: FOCUS ON THE PRICING POWER OF A COMPANY

The next approach focuses on the pricing power of the company. Investors want to know how much of a premium the company can charge above its competitor’s product. To give the annual figure for how much the brand is worth, this premium can be multiplied by the units sold.

#3: COMBINE DIFFERENT APPROACHES

Perhaps the most time-consuming approach is to combine the above approaches with the proprietary measures of brand strength, the role of the brand in consumer decisions, and more. This comprehensive approach may not be practical to individual investors.

HOW ARE BRANDS SHIFTING NOW?

Creating a significant connection with people is essential for all organizations and a brand can embody attributes which consumers will feel drawn to. In the last several years, brands have become more visible through social media and other digital platforms. The consumer’s voice is louder and much more public now. There are even websites dedicated to championing the views of the consumers (e.g., TripAdvisor and Yelp).

Image Credits: pixabay.com

Consumers can easily publish their experiences about a certain brand with a few taps on their mobile phones. This amount of convenience can either tarnish or help your brand. Fortunately for you, you have the ability to respond to feedbacks and reviews. Responding to these can have a profound effect on how your brand is perceived. Take some time to think about your responses.

Sources: 1 & 2

Invest Your SRS with MoneyOwl And Get Up To $200 Shopping Vouchers

The Supplementary Retirement Scheme (SRS) is a voluntary scheme to encourage individuals to save for retirement. Unlike the Central Provident Fund (CPF), it is not compulsory to participate in the SRS scheme. A key benefit of SRS is that members can enjoy dollar for dollar tax relief, capped at $15,300 per annum for Singaporeans while saving towards their retirement goals. As a tax deferral scheme, when you subsequently withdraw from your SRS after the statutory retirement age, only 50% of the amounts withdrawn will be subject to tax. Individuals who would like to open an SRS account can do so with either DBS, UOB or OCBC bank.

Don’t leave your funds in SRS un-utilised

After transferring funds into your SRS account, don’t leave it un-utilised! According to Ministry of Finance (2019), over 28% of SRS contributions sit idle as cash balances, earning a low interest rate return of only 0.05% p.a.

There are many ways that you can utilitse your SRS contributions to grow your retirement funds, such as investing in unit trusts, ETFs, stocks, bonds (including Singapore Saving Bonds and Singapore Government Securities) and single premium insurance. A particular affordable and convenient way is to invest your SRS funds with MoneyOwl to boost your future retirement fund. Here’s why you should do so.

Invest your SRS with MoneyOwl

Investing your SRS funds with MoneyOwl starts from as little as S$50/month or $100 as a lump sum. This means that it is possible to start early without waiting for your SRS funds to accumulate to a substantial level. Besides, there is no platform fee so that more wealth is generated for the you in the long run. With MoneyOwl, you gain access to a globally diversified portfolio of companies with good growth potential at value prices.

Receive up to $200 eCapita shopping vouchers

MoneyOwl is offering a limited time SRS promotion valid till 31 Dec 2020*

Tiers	Qualifying Conditions*	eCapita voucher
1	S$1,000 to S$10,000 fresh funds invested OR;	$50
2	S$10,001 to S$50,000 fresh funds invested OR;	$100
3	S$50,001 and above fresh funds invested	$200

More details can be found on MoneyOwl’s website

*T&C:

This promotion is only valid from 9 November to 31 December 2020.
This promotion is only open to the first 500 people who successfully invest their SRS funds with MoneyOwl.
Promotion is valid for one-time top ups using SRS funds only. Regular savings plans/ monthly SRS investments are not eligible.
Promotion is not valid for cash investments and investments in WiseSaver portfolio.
You need to stay invested and not withdraw your funds for at least 2 months after the promotion period is over (i.e. till end-February 2021). Vouchers will be sent to you in March 2021.
Only new MoneyOwl clients are eligible for S$50 voucher redemptions.
Both existing and new MoneyOwl clients are eligible for the $100 or $200 voucher redemption.
MoneyOwl reserves the right to change these terms and conditions from time to time.

About MoneyOwl

MoneyOwl empowers and fulfils lives by helping people make wise decisions to achieve their financial goals. With one of the lowest fees in the market, invest your SRS funds with MoneyOwl today to boost your future retirement income.

How OCBC’s Online Investment Platforms May Suit Your Investment Objective

Do you know that OCBC has an investment platform that caters to a wide variety of investment objectives? Whether you are an investor who prefers to have your portfolio managed by professional fund managers, an investor who prefers accumulating stocks via a dollar-cost averaging approach or an investor who appreciates the discipline of algorithm-driven portfolio management, there is bound to be something suitable for you with OCBC’s 3 main investment platforms. Here is a comparison of OCBC’s Blue Chip Investment Plan (BCIP), RoboInvest and Unit Trust to show how they suit each investment profile.

Comparison of OCBC’s BCIP, RoboInvest and Unit Trust Platforms

OCBC RoboInvest

OCBC’s RoboInvest delivers the best elements of high-end investing services to a retail audience. Besides wide-ranging portfolios invested across 6 different geographical markets with interesting investment themes such as Future World, Impact Investing, Gen Z etc., it also boasts a seamless user experience:

No need to open a securities or custodian account
Top up and withdraw your investments easily by using your OCBC deposit account anytime without fees and charges
Be notified on portfolio rebalancing opportunities to help maximise your returns based on changing market conditions

More sophisticated investors such as PMETs, who are attuned to financial news and the latest developments of the global economy would appreciate the chance to invest in portfolios constructed around such broad and popular investment themes like US technology or the rise of China. RoboInvest is therefore the answer for investors who are keen to invest in a wide-range of investment themes and enjoy automated portfolio management service without paying excessive management fees.

Meanwhile, new investors can take advantage of RoboInvest’s risk-based portfolios (defensive, conservative, balanced, growth, aggressive) to gain diversified exposure to various asset classes and geographical markets at relatively low cost. This can form the core of their investment portfolio, and they can build on it with time

OCBC Blue Chip Investment Plan (BCIP)

The BCIP allows investor to gain access to dividend-yielding stocks and ETFs listed on the Singapore stock exchange. By making monthly investments from as low as S$100 per month, an investor is able to purchase shares in amounts below the standard lot size. Full-time national servicemen or young investors would find the ability to buy below the standard lot size very attractive given that they might not have accumulated sufficient capital for investment yet. By investing consistently each month via a dollar cost averaging approach, the BCIP allows investors to reduce their average cost of purchase over time. A strict monthly investment plan also reduces the risks associated with market timing risks and allow investors to accumulate stocks in a disciplined manner.

In addition, there is great flexibility since there is no lock-in period while counter selection and monthly investment amount can be easily tweaked. The BCIP is therefore most suitable for new investors keen to implement a dollar-cost averaging strategy by starting small and staying invested while retaining flexibility and control on their portfolios.

Unit Trust

The OCBC Unit Trust Investment platform is one of ways to access the bank’s top fund ideas that have been carefully selected by its panel of investment experts.
Through actively managed unit trusts, investors can simply leverage on the expertise of professional fund managers who possess the experience, skills and resources to manage the portfolio on your behalf. The OCBC online platform allows the user to compare, buy, sell and monitor unit trusts with ease.

This is perfect for time-pressed individuals who do not have the time to monitor markets and recognise their own limitations in investing. For instance, working parents might gain greater utility and satisfaction by spending precious time with their children while leaving their investments to professionals looking after their portfolios. The Unit Trust Investment platform would most appeal to long-term investors who are keen to access a diversified portfolio in a more cost-effective manner whilst having a professional fund manager at the helm, monitoring and managing their investments through different market conditions. This may go a long way to provide a peace of mind.

Whether you are a new investor just starting out, a busy parent with no time to mull over investing, or a sophisticated investor looking to invest in the latest investment themes, OCBC’s various online investment platforms capably address these various investment objectives so that its clients are able to build a stable financial future with convenience and confidence.

Click here to find out more about the different investment products from OCBC.

Disclaimer:

All figures provided are for illustration purposes only. Actual figures may vary or differ depending on the actual circumstances.

This is for general information and does not take into account your particular investment and protection aims, financial situation or needs. You should seek advice from a financial adviser before committing to a purchase. Otherwise, you should consider the suitability of the product.

Investments are subject to investment risks, including the possible loss of the principal amount invested.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Comparison of Various Platforms for Gold Investments

Don’t leave your funds in SRS un-utilised

Invest your SRS with MoneyOwl

Receive up to $200 eCapita shopping vouchers

Comparison of OCBC’s BCIP, RoboInvest and Unit Trust Platforms

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