Types of Investments


Nowadays, there is a wide range of products for consumers to choose from. It is important that you take time to choose something that is suitable for you. Take a look at your goals and investment objective, what investments you already have, what you can afford, and your risk profile.

Buy only what you fully understand – be familiar with the product’s benefits, risks, limitations and costs. Know how much you can lose in the worst case and how this may happen.Think about diversification - will the product complement, supplement or replace what you have? Or will you end up being over-exposed to a particular risk?

Read our checklist "Key questions you should ask yourself before buying an investment product" to guide you along.

Some products are more complex than others and may be difficult to understand. The Monetary Authority of Singapore (MAS) has categorised such products as Specified Investment Products (SIPs). Some SIPs are listed on an exchange, for example, exchange traded funds, structured warrants and futures. Unlisted SIPs include structured deposits, structured notes, unit trusts and investment-linked insurance policies. With effect from October 2012, some investment products listed on foreign exchanges, certain collective investment schemes (i.e. some unit trusts) and some sub-funds of investment-linked life insurance policies will not be considered as SIPs provided they meet certain requirements. Check with your financial institution to find out whether a product is an SIP. For information on the requirements in place when transacting SIPs, please refer to Consumer Guide on SIP Requirements.

 

  • Bonds

    Bonds are a form of borrowing. They are debt securities issued by borrowers such as governments or companies seeking to raise funds from the financial markets. They are also known as fixed income securities because most bonds pay a steady stream of interest income at periodic intervals throughout the life of the bond. Read more..

  • Unit Trusts

    If you invest in a unit trust or fund, your money is pooled with money from other investors and invested in a portfolio of assets according to the fund’s stated investment objective and investment approach. In Singapore, local and foreign funds offered to retail investors are regulated as collective investment schemes. The unit trust or fund is managed by a fund manager. Read more..

  • Shares

    Shares are issued by companies to raise capital or financing from investors. When you buy a company’s shares, you become a shareholder of the company. Shareholders are usually entitled to a share of any dividends that are declared and paid. Read more..

  • Traded Life Policies

    A traded life policy (“TLP”) is a life policy that has been sold by the original policy owner to an investor other than the insurer itself. TLPs are also commonly known as ‘second-hand’ life policies. Read more here..

  • Exchange Traded Funds

    Exchange traded funds (ETFs) are open-ended investment funds listed and traded on a stock exchange. Your money is pooled with money from other investors and invested according to the ETF’s stated investment objective. Read more here..

  • Real Estate Investment Trusts

    Real Estate Investment Trusts (REITs) are often described as instruments that offer investors the opportunity to invest in a professionally managed portfolio of real estate, through the purchase of a publicly-traded investment product. Individuals invest in a REIT by purchasing units of the trust, similar to shares of a common stock. Read more..

  • Structured Deposits

    A structured deposit combines a deposit with an investment product. The return on a structured deposit depends on the performance of an underlying financial asset, product or benchmark. Read more here..

  • Contract for Differences

    A CFD allows you to speculate on future market movements of the underlying asset, without actually owning or taking physical delivery of the underlying asset. Read more here.

  • Investment-Linked Insurance Policies

    Investment-linked insurance policies (ILPs) have both life insurance and investment components. Your premiums are used to pay for units in investment–linked fund(s) of your choice. Some of the units you buy are then sold to pay for insurance and other charges, while the rest remain invested.  Read more here..