In that case, instead of stocks, can try put some cash in "
Phillip Money Market fund". MMF are a class of very low volatility investment that usually (i think) pay out more than most bank interest, traditionally one of the safest investment becaused they are designed to have no losses in all good and bad economies, just that the capital is not insured like bank deposits.
Another 'slight higher risk' alternative is to invest part of the cash in "bond funds", which are typically lower volatility than stocks funds (lower volatlity means lower potential losses). Bond funds can lose money also, just that they 'typically' lose lesser than stocks (but there are exceptions), so key thing is to select a suitable bond fund that will mostly make money to ensure at end of 5 year, you get positive returns.
So you may consider this bond fund called "
LionGlobal Singapore Fixed Income Investment Class A" - it has positive profits around 2006 till 212, even in 2008 and 2011 stock market downturns. it has much lower potential losses than stocks (potential losses withing the year is usually around 1~3%, roughly estimated). Good thing i like about this bond fund is that it contains near 50% singapore govt bonds which are quite good performing during economic crisis, and rest are in singapore corporate bonds which perform better during good economic times. avoid high yield bonds and junk bonds funds that do poorly in crisis.
If interested in above can consider contact phillip investor centre which provide zero sales charge for both these unit trust. currently i not vested in both these 2 but will be vested in very near term. I not related to phillip or these two funds otherwise.
If not comforatble with above unfamiliar instruments, can consider 3k in Lionglobal fund, 5k in MMF, rest 7k in fixed deposit/bank savings. Diversify your investment risks, while at same time get to experience some investing first hand.
