How to start investing in Singapore comes down to four steps. Put aside an emergency fund and clear expensive debt, decide what the money is for and when you will need it, choose the type of product that fits that time frame, then open an account with a provider regulated by the Monetary Authority of Singapore (MAS). You can begin with a few hundred dollars.
Investing can lose money. Shares, ETFs, unit trusts and REITs can all fall in value, and you may get back less than you put in. This guide, and the series it introduces, explains how investing works. It does not tell you what to buy.
Before You Start Investing in Singapore
MoneySense, the national financial education programme, lists three things to have in place first:
- Enough money for daily expenses and other expected spending.
- Cash for emergencies of about three to six months’ income.
- Basic health and life insurance.
Our emergency fund calculator works out a figure from your own monthly costs.
High-interest debt comes before investing too. Credit card interest is charged at a known rate; investment returns are uncertain. Paying down the debt is a return you can count on.
Also remember what your CPF savings already earn. The Ordinary Account pays a guaranteed 2.5% a year, its legislated minimum. Our explainer on the CPF OA rate and inflation puts that figure in context.
Step 1: Match the Money to a Time Frame
The single most useful question is when you will need the money back. MoneySense advises that money needed in the near term belongs in low-risk products that are easy to cash in, such as Singapore Savings Bonds. Money you can leave for many years has time to ride out falls in price.
| When you need the money | Products people commonly look at | Main trade-off |
|---|---|---|
| Any time, or within a year | Savings accounts, Singapore Savings Bonds, T-bills | Low but steadier returns; inflation can outpace them |
| In one to five years | Savings Bonds, T-bills, fixed deposits | Returns are known in advance but modest |
| In five years or more | Shares, ETFs, unit trusts, REITs, robo-adviser portfolios | Potentially higher, non-guaranteed returns; prices can fall sharply |
These are categories, not recommendations. The right mix depends on your goals, your other savings and how much loss you could live with.
Two more questions help. How much time will you spend? Funds and robo-advisers need little; individual shares need research. And how would you feel if the investment fell 30%? If you would sell, a lower-risk mix may suit you better. MoneySense states that all investments can lose money, in some cases all of it.
Step 2: Compare the Main Investments for Beginners
The most common investments for beginners in Singapore are Singapore Savings Bonds, T-bills, index ETFs, unit trusts, robo-adviser portfolios and individual shares. They differ mainly in risk, how much you need to start and how much work they take.
| Investment | Risk level | Minimum to start | Effort | Can you lose money? |
|---|---|---|---|---|
| Singapore Savings Bonds | Low | S$500 | Low | No capital loss if redeemed (MAS); returns are modest |
| T-bills | Low | $1,000 | Low | Held to maturity, you get face value; no early exit feature |
| Index ETFs | Medium to high | One board lot, or less via a regular savings plan | Low to medium | Yes |
| Unit trusts | Varies by fund | Set by each fund or platform; some offer monthly plans | Low | Yes |
| Robo-adviser portfolios | Varies by portfolio | Often as little as $1 (MoneySense) | Low | Yes |
| Individual shares | High | 100 shares at the market price, plus fees | High | Yes, up to the full amount |
Minimums come from MAS and MoneySense as at November 2026; providers set their own for funds and robo portfolios. Each type has its own guide:
- Singapore Savings Bonds. Ten-year government bonds, redeemable in any month without penalty for the amount invested (MAS). See the Savings Bonds guide.
- T-bills. Six-month or one-year government bills sold at auction. See T-bills vs Savings Bonds vs fixed deposits.
- ETFs. Exchange-traded funds that mostly track an index, which keeps fees low. See the ETF investing guide.
- Unit trusts. Pooled funds bought from a bank or fund platform at the day’s net asset value. MoneySense lists annual management fees of 1% to 2% for active funds and below 1% for most passive funds, plus possible sales charges. See how to invest in unit trusts.
- Robo-advisers. Platforms that build and rebalance a fund portfolio for a yearly fee. See robo-advisors explained.
- Shares. Part-ownership of a company. SGX shares mostly trade in lots of 100, so a $4 share costs $400 a lot before fees. MoneySense warns you can lose the whole amount, as shareholders rank behind creditors if a company fails. See how to buy stocks in Singapore and our blue chip stocks guide.
- REITs. Listed trusts that own income-producing property. See the Singapore REITs guide.
Step 3: Spread the Risk
MoneySense describes three tools for managing risk:
- Diversification: spreading money across many holdings, sectors and countries. Its own example: put everything in one company and you could lose it all if that company fails; spread it across five and one failure costs about 20%.
- Asset allocation: deciding what share goes into shares, bonds and cash, based on your goals, time frame and tolerance for loss.
- Dollar-cost averaging: investing a fixed sum at regular intervals, whether markets are up or down, so you are not trying to time the market.
A single index fund or a robo-adviser portfolio already holds many companies. Buying a handful of individual shares does not.
Products to Approach With Care
MoneySense flags some products as complex. These are Specified Investment Products, and a firm must check your knowledge or experience before selling one to you. They include leveraged and inverse ETFs, structured products and contracts for difference. Investing apps often list them beside ordinary shares, and leverage magnifies losses as well as gains. Our explainer on what CFDs are shows how a leveraged position can lose more than the deposit.
Watch for scams too. MoneySense warns against any offer promising high returns at little or no risk.
Step 4: Open the Right Account
To buy SGX-listed shares, ETFs or REITs yourself you need a brokerage account, and usually a Central Depository (CDP) account in your own name. Some brokers instead hold shares for you in custody. Our guide to choosing a brokerage account explains what a brokerage account does and the difference between the two set-ups.
If you prefer someone else to build the portfolio, a robo-adviser or a fund platform does that for a yearly fee. Our investment platform comparison costs the main options.
Before you deposit anything:
- Look the firm up in the MAS Financial Institutions Directory and check it is licensed for the activity it is offering.
- Check the MAS Investor Alert List, which names persons who may have been wrongly perceived as licensed or regulated by MAS. It is not exhaustive.
- Remember that SDIC deposit insurance covers Singapore-dollar bank deposits, not shares or unit trusts.
How Much Difference Time and Fees Make
Illustration only, not a guarantee. Say you invest $300 a month for 20 years, a total of $72,000, at a steady return after fees:
| Assumed yearly return | Value after 20 years |
|---|---|
| 2% | About $88,400 |
| 4% | About $110,000 |
| 6% | About $138,600 |
Fees work the other way. Take $50,000 invested for 20 years at an assumed 5% a year before costs. With yearly costs of 0.2%, it grows to about $127,700; with 1.5%, to about $99,500. The gap, about $28,200, is the higher fee alone, charged whether or not the investment does well.
Real returns do not arrive in a straight line. Some years are negative, and a fall just before you need the money hurts most. Try your own numbers in our compound interest calculator, or see what your savings could support in the financial freedom calculator.
The short version: emergency fund and expensive debt first, then match each pot of money to when you need it, spread the risk, watch the fees, and check the provider with MAS before you invest.
Using CPF or SRS Money
CPF Board lets you invest Ordinary Account savings above $20,000 and Special Account savings above $40,000 under the CPF Investment Scheme. Up to 35% of investible savings can go into shares, property funds and corporate bonds, and up to 10% into gold (see buying gold with CPF and SRS). CPF Board adds that if you are unsure about investing, you can leave the money to earn risk-free CPF interest.
Our CPF Investment Scheme explainer covers the rules, and the CPF OA vs invest calculator shows the return you would need to beat 2.5%. Supplementary Retirement Scheme savings can also be invested; see our SRS guide.
A Note on Tax
IRAS says gains from buying and selling shares and other financial instruments are generally viewed as personal investments and not taxed. One-tier dividends from Singapore-resident companies are not taxable, nor are most REIT distributions to individuals. Foreign dividends received by resident individuals are generally not taxable here, but the paying country may withhold tax first. The US, for example, withholds 30% on dividends paid to non-resident individuals unless a tax treaty lowers it, according to the IRS. Singapore is not on the IRS’s list of US income tax treaty countries, so the 30% applies to US dividends you receive directly. Our guide to investing in the S&P 500 from Singapore explains how fund domicile changes this.
More Guides in This Series
- Investing with $1,000: where a small sum can go.
- Investing during a recession: cash first, then rules instead of reactions.
- Investing vs trading: how the two differ in cost, tax and risk.
What To Do Next
- Work out your emergency fund and set it aside before investing.
- Write down each goal, the amount and the year you need it.
- Pick one product type and read its guide in this series in full, including the risks.
- Do your own due diligence: read the provider’s fee page and the product highlights sheet, and check the firm in the MAS Financial Institutions Directory and the Investor Alert List.
