Goal: Investing in Singapore

How to invest and grow my wealth?

Investing can be an effective way to grow your wealth over time and work towards long-term financial goals. Whether you're saving for retirement, building a passive income stream or growing your assets for the future, investing allows your money to potentially generate returns beyond what a traditional savings account may offer.

While there are many investment options available, getting started does not have to be complicated. The key is to choose an investment approach that aligns with your financial goals, investment horizon and comfort level.

As you begin your investment journey, remember that diversification is key. A diversified portfolio that includes a mix of assets can help balance risk while supporting your long-term wealth goals.

Why should you invest to grow your wealth?

Investing can help your money work harder for you by providing opportunities for long-term growth. While keeping money in cash can offer stability and liquidity, investing gives your savings the potential to grow over time and better keep pace with rising costs and inflation

As shown in the graph above, inflation in Singapore rose 2.2% year-on-year in July 2026,1 reminding us that the cost of living tends to increase over time. As prices rise, money kept solely in cash may gradually lose purchasing power, making it important to consider how your savings can continue to support your future financial needs.

At the same time, Singapore's personal saving rate remained healthy at 32.3% in 2Q 20262, demonstrating the importance many households place on setting money aside for the future. While saving provides a strong financial foundation, investing can help your money work harder by offering the potential for long-term growth.

What are the different types of investments in Singapore?

In Singapore, you get to choose from many investment options to suit different financial goals, time horizons and risk preferences. Understanding each option can help you decide where to invest your money to grow.

Unit Trusts and Mutual Funds

Unit trusts and mutual funds pool money from multiple investors and invest it across a range of assets, such as equities, bonds, or other securities. They can help investors diversify their portfolios and gain access to professionally managed investments.

Bonds and Fixed Income Investments

Bonds and other fixed income investments provide regular interest payments and return the principal amount at maturity, subject to the issuer's terms and creditworthiness. Investors seeking more stable income and lower risk than equities may consider them.

Endowment and Savings Plans

Endowment and savings plans combine savings with insurance protection and may offer guaranteed and/or non-guaranteed benefits, depending on the plan. They can be considered for specific financial goals and long-term wealth accumulation.    

Stocks

Stocks represent part ownership in a publicly listed company. While they offer the potential for higher returns, they also come with higher risks and greater price volatility. It is important to remember that the potential for gains also comes with the possibility of losses^3.

Exchange-Traded Funds (ETFs)

An ETF tracks an index of many companies, which makes it more cost-effective than investing in different companies individually. It is suitable for individuals with a medium risk level who want to diversify their investment at lower costs.

Singapore Savings Bonds (SSBs)

Fully backed by the Singapore Government, SSBs let you earn regular interest and are a good way to diversify your investment portfolio. They are ideal for risk-averse income investors seeking passive income and who do not mind lower returns in favour of more liquidity⁴.

Fixed Deposits

Also known as term deposits, fixed deposits require a set amount of cash over a set deposit period. With interest rates slightly better than a regular savings account, fixed deposits are guaranteed by the bank and provide low-risk and stable passive income⁴.

Investment-Linked Policy (ILP)

An Investment-Linked Policy combines life insurance coverage and investment⁵. Like life insurance, an ILP provides insurance protection in the event of death or may include terminal illness and/or total and permanent disability, depending on the policy terms. Part of the premiums paid is used to purchase units in one or more investment funds of your choice. The value of the investment component depends on the performance of the underlying funds and returns are not guaranteed. An ILP may be considered by individuals seeking both insurance protection and the potential for long-term wealth accumulation through a single solution.