New to Investing

Welcome to the world of investing. Take charge of your financial journey and get ready for your next stage in life

 

How to Invest

Investing does not always have to be complex. At PhillipCapital, we have simplified the investing basics into four simple steps below. Follow our step-by-step guide to get you started.

1. Set Your Goals

Before you can define any objectives, ask yourself what you would want to achieve. Is your goal to save for retirement, payment for mortgage or something else?

Pen it down

Instead of visualising, writing your objectives will make them more realistic

Set your investment timeframe

Is it short term (<1 year), medium term (1-5 years) or long-term (>5 years)?

Figure out how much you’ll need

Based on your goals, define your target rate of returns and therefore, figure out how much money you’ll need

2. Plan Your Investments

It is important to understand how much risk you can accept before embarking into the investment.

Understanding your Risk Profile

Determine your risk tolerance here to find out what level of risk and reward you are comfortable with.

Diversifying your assets

Based on your risk tolerance, see the suggested asset allocation. Remember that in order to further minimise your risk, it is important to diversify your investments within each asset class as concentration on a single investment is risky.

Risk Tolerance

You are a Low Risk Investor

Your primary objective is capital preservation and you have no or limited investment experience.

You view liquidity needs as important; and are able to stay invested for not more than 3 years.

You are willing to accept minor fluctuations in the value of the portfolio.

See the suggested allocation for an Low Risk Investor

You are a Medium Risk Investor

You are a relatively experienced investor who is looking for moderate growth and diversification.

You do not have any liquidity needs in the short to medium term (between 3 to 10 years).

You are willing to tolerate moderate fluctuations in the value of the portfolio.

See the suggested allocation for an Medium Risk Investor

You are a High Risk Investor

You are a knowledgeable investor and are not concerned about short term fluctuations in the market. You have the ability to tolerate significant fluctuations.

You have a relatively long period of time before you will need to use these investments (more than 10 years).

You are an investor who is willing to accept significant risk with longer term fluctuation, including possible loos of principal while maximizing growth potential of assets

See the suggested allocation for an High Risk Investor

Portfolio Allocation

Low Risk Portfolio

Make use of our asset allocation models to rebalance your portfolio

Bonds

A debt investment in which an investor loans money to an entity (corporate or government) that borrows the funds for a defined period of time at a fixed interest rate.

Equities

Also known as stocks, it is the share in the ownership of a company. Stocks represent a claim on the company’s assets and earnings.

Cash

Cash and cash equivalents such as bank deposits, money market funds and Treasury Bills.

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Medium Risk Portfolio

Make use of our asset allocation models to rebalance your portfolio

Bonds

A debt investment in which an investor loans money to an entity (corporate or government) that borrows the funds for a defined period of time at a fixed interest rate.

Equities

Also known as stocks, it is the share in the ownership of a company. Stocks represent a claim on the company’s assets and earnings.

Cash

Cash and cash equivalents such as bank deposits, money market funds and Treasury Bills.

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High Risk Portfolio

Make use of our asset allocation models to rebalance your portfolio

Bonds

A debt investment in which an investor loans money to an entity (corporate or government) that borrows the funds for a defined period of time at a fixed interest rate.

Equities

Also known as stocks, it is the share in the ownership of a company. Stocks represent a claim on the company’s assets and earnings.

Cash

Cash and cash equivalents such as bank deposits, money market funds and Treasury Bills.

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3. Start Investing

Now that you know your Investment objective and have planned your investment, the next step is to put that into an action plan. Start your investment early to maximise the effect of compounding.

Open an account

At PhillipCapital, we have several types of accounts to best suit your investment needs. Find out more and open a Phillip Trading Account.

Transferring funds to your account

See your funding/payment options.

Investor Education

Explore the various educational tools available to help you in your investment decisions.

4. Stay Focused

It is important to regularly look at the progress you are making towards your investment objectives and rebalance your portfolio, if required.

Contribute regularly

Even modest contributions, when made regularly, will have a substantial effect due to the power of compounding.

Check your investment (s)

You’re working hard for your money, so ensure that your investments are also working for you. Check your investments regularly (more often if you have a riskier portfolio), especially if any major life events (such as getting married or welcoming a new child) occur as these may call for some adjustments in your portfolio.

Rebalance your portfolio

This is an important process in managing your portfolio because when the markets move, it requires commitment to stay on track. Remember that you may need to rebalance your portfolio by moving gains from assets that have done well to put them into those that may have high potential growth.

Product and Services

Find out more about full suite of investment products and services

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Suite of Trading Platforms

Trading and investing is easy and convenient through our suite of platforms that cater to different needs of clients.

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New to Phillip

Just opened an account with PhillipCapital? These are the essentials you need to know.

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Contact us to Open an Account

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IMPORTANT INFORMATION

This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

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

 

Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com