info for beginners

[Wildreamz]

assuming i have 1000.
buying 1 lot at $10 means i still have $990
why would be be considered tuition fee?
is it because of the underlying fees and such? ( I am afraid i don't understand. my bad haha

For starters, 1 lot = minimum investment you can make in a stock = 1000 shares (usually) = 1000 x share price. For example, 1 lot of Singtel share right now would be about $3290 before charges.

 

[remy3413]

assuming i have 1000.
buying 1 lot at $10 means i still have $990
why would be be considered tuition fee?
is it because of the underlying fees and such? ( I am afraid i don't understand. my bad haha

Either you trade in board lot or unit share, there's a market for odd lots but the prices are different

ETFs are SIP ( Specific Investment Products ), you need more knowledge to invest this compared to ordinary stocks

 

[yihao93]

damn. i was sooooooooooooooooo off. ok i see it now.

 

[Dividends Warrior]

damn. i was sooooooooooooooooo off. ok i see it now.

Yup. Let me give u an example in calculations.

1 lot = 1000 shares

1 share of Singtel is $3.29

1 lot of Singtel = $3.29 X 1000 = $3, 290

People usually buy 2 or 3 lots at one go.

So, as you can see, your $1000 is not sufficient for meaningful investment.......

But it is good that you are asking and learning.

 

[Dividends Warrior]

REITs are "Real Estate Investment Trust".

To put it in very simple terms, a REIT acquires properties (shopping malls, offices, warehouses, hospitals etc). Then it collects rental income from the tenants. Lastly, it distributes the money to the investors.

If you want regular cashflow, you might to explore REITs.

However, it has risks. During the financial meltdown in 2008/09, many REITs faced financing problems. So they issued rights and private placements. A few almost went bust.

I have a few REITs too. You can check out my portfolio.

 

[Futureskid]

well today picked up this book and started reading, found that what i would be interested in( at this point of time with limited knowledge) would be bonds, ETF, indexes because from what i know these are low risks as compared to the other investing methods like gold, forex and stock market.

I have different thinking as u: since the age is still young, then u can afford to take up more risk, because u still have time value and u can start all over again when u start working(which easily exceeds your current allowance in NS ) What the point of investing in low returns products when your capital is so small, unless u just want to preserve your capital becos u want to retire now or u r rich.

Leverage your returns.
Just my personal perspective.

 

[Hoo8899]

well today picked up this book and started reading, found that what i would be interested in( at this point of time with limited knowledge) would be bonds, ETF, indexes because from what i know these are low risks as compared to the other investing methods like gold, forex and stock market...

My thought is that buying bonds in a heavily indebted company is much riskier than buying shares of a blue chip. The capital you have is indeed not enough to buy anyone of the three you mentioned. Perhaps, save a bit more, and at the same time try to learn more about investing and short-list a number of stocks you like and monitor them.

That's probably what you can do now if you want to have an overall low risk portfolio.

 

[Hoo8899]

Maybe I should advise and encourage TS to make the first step, as I can see that TS is really keen to invest. Please monitor B10.SI Boardroom Limited, if it hit 50c, you can pick up 2 lots and hold it.

Rational behind this proposed investment:

1. low fluctuation of price: between the last 3 years, the price ranges between 48c to 60c. much lesser fluctuation if you compare to others. If you buy at 50c, I think at most you rugi $40 for 2 lots (ofcoz we have to think about losing money before thinking about making money). 48c is a strong support IMO.

2. simple and understandable business: secretarial, accounting and registered agents for companies (most of listed companies use their register services)

3. stable business and positive outlook: Currently, companies with revenue below 5M can skip audit (go for compilation service), and this requirement is going to changed to 10M soon. So more companies can opts for compilation and/or non-auditing services. I am not sure about the client base of Boardroom, but I believe that since Boardroom is consider a big organisation, its clients should not be small in size, and probably a lot of them are having revenue just below 10M.

4. consistent dividend paying policy: 3c for the last 5 years, if you managed to pick up at 50c, then the yield is 6% per annum.

TS might think that 6% (which is $60 for 2 lots) is nothing, but bare in mind that this is what you would expect from a low-risk investment. Pls do some research on my recommendation.

Disclaimer: The recommendation is made purely for reference purpose only, the writer shall not be liable for any misleading of the information, misinterpretation of the historical data, and/or any potential loss or damages caused to TS.

 

[maliciousmonster]

First ask yourself what is your definition of "profit"? 1k, 10k, 100k, 1m?

For me as long as I can get my savings above the inflation rate (currently around 4%).. I'm making a profit..

With that mentality than you will know what you want to invest..

Let's say you invest in bluechips.. looking at current market, i'd say the avg is around 5-7% return.. To sum things up, with your $1,000 capital.. you'll be getting $50 in return after 1 year.

1 year = $50
1 month = $4.1666

Than you ask yourself, is $4.1666 every month worth your time?

If not, should I go for higher risk / higher gain investment?

 

[doody_]

Maybe I should advise and encourage TS to make the first step, as I can see that TS is really keen to invest. Please monitor B10.SI Boardroom Limited, if it hit 50c, you can pick up 2 lots and hold it.

Thanks for sharing, I love stocks with good and stable annual returns

 

[Hoo8899]

Thanks for sharing, I love stocks with good and stable annual returns

Good luck, personally not vested (yet)

 

[yihao93]

Futureskid - It's my first time, so i have a sort of a ''play it safe'' attitude, and using this sum of money to at least kickstart my venture into this unknown field. ( i guess it is also my personality to not go into big risk projects immediately)
Another reason is because my capital is low, if i were to invest in shares with big risks which i understand is a big part of my capital, it will be too damaging for me , hence i want to avoid this situation for now.

DW - REITs is quite appealing to me , but I am personally quite new to this and am just exploring my options and learning what type of things i can invest in ( i have earmarked a couple types? and i would be doing research or asking the forumers here)

maliciousmonster- At this point in time untill the new few years( 3-5) the dividends yield to be honest does not matter to be, for the 1k will just be sitting in my bank collecting interest and I am confident i will have emergency cash on standby too. Since this is my spare cash stash, I am happy with 50/year . ( i think. hahah)

Hoo8899- thanks for your suggestions ! but for now i am not keen to dive straight into investing- would at least like to look into how the market in SG works, for this book i am reading is in USA's context .
However, I have a question, your advice is for me to buy 2 lots- IE , my entire capital of 1k is put into it, wouldnt it be risky?
Or do you mean for when my capital is larger?


----------------------
Based on my reading today, am i right to say that my current investment options is stocks? ( other options is above my capital) . Even so, where can i find a catalogue(if you may) of bonds, stocks, ETF , REIT and indexes?
Do the catalogue also at least provide charts of past growth , etc,?

Lastly, I am thinking of putting my capital into money market fund to grow my capital ( any comments/insights about this?) Because all i know is that it offers a low yield, but at least higher then banks for the short term but the downside could be that the amount deposited is not insured by the government.

TAXES-How would this affect my investment in singapore? Is there a website I can access to find how how taxed investment profits affects me?

(incoherent post- could be updated_

 

[bhalimking]

Yihao, you are young. Slowly learn and you'll be up there once u've grasped the concepts. There are a couple of books on reits also on the bookstore which I would recommend you. It's quite comprehensive.

 

[yihao93]

still on my first book , trying to learn, my questions here are a result of my readings. although sometimes i ask myself whether i am proceeding too fast.
my friends have invited me to this club where he invests in. I am uite apprehensive about visiting it and the value i will get with my half baked knowledge.
Any suggestions? =)

 

[Epps_Sg]

Based on my reading today, am i right to say that my current investment options is stocks? ( other options is above my capital) . Even so, where can i find a catalogue(if you may) of bonds, stocks, ETF , REIT and indexes?
Do the catalogue also at least provide charts of past growth , etc,?

Lastly, I am thinking of putting my capital into money market fund to grow my capital ( any comments/insights about this?) Because all i know is that it offers a low yield, but at least higher then banks for the short term but the downside could be that the amount deposited is not insured by the government.

TAXES-How would this affect my investment in singapore? Is there a website I can access to find how how taxed investment profits affects me?

(incoherent post- could be updated_

Initially I started off my 'investment' with a 4 year AUD structured deposit because i was not able to learn any other investment strategy that i believe i could pull off, so dont be afraid to start simple till you learn an investment strategy that you think you can pull off, even if its money market fund. What i got out of the simple structured deposit was more sensitivity to the market and forex, which helped in my further learning later on. If you want, just park your money in Phillip money market fund first, then one thing can follow another, you can take your next step when you learned enough - at the very least you can start some low risk 'investment' and tell your yourself you have taken a step beyond the 'savings account' stage, then keep the momentum going.

Phillip Securities website is quite informative abut ETF, unit trusts and stocks. I also use Yahoo! Finance to view charts and historic data. Frankly speaking, i mostly use 'Stock Watcher' app on my Android phone to check stock, ETF, bond, gold price and chart etc as well as my portfolio returns. Since i dont actively trade or analyse stocks, the simple app is enough for me. Oh i also read Bloomberg's World, Economy, and U.S., Commodity, Bond and Currencies news on the Bloomberg Android app almost everyday, as I am more of a macro economic investor.

There's no capital gains tax, interest tax, dividend tax for your investments here in Singapore.

You can go to the investment club and see what they are doing, then come tell us what you think If you can get even one good idea there or gain some knowledge, its good isnt it? If you listen and dont understand, then at least you know what are the things that you dont know and may still need to learn.

 

[hamstertrance]

Not much of a pro here. But just to share abit of my experiences. I started off by getting a POEM account and got into Shares builder plan. Been doing that since my uni days for $200/month. With 1k i dont think you can buy much. You could try out shares builder plan like me. It keeps you disciplined to come up with that $200 per month. It's like saving. Btw, share build plan is a platform for dollar cost averaging method. Dollar cost averaging will help lower risk also. SBP gives you the option to buy most of the blue chip in SG. you can also purchase STI ETF in SBP. Now I mainly do mid to long term investment =)

 

[musicwhiz55]

still on my first book , trying to learn, my questions here are a result of my readings. although sometimes i ask myself whether i am proceeding too fast.
my friends have invited me to this club where he invests in. I am uite apprehensive about visiting it and the value i will get with my half baked knowledge.
Any suggestions? =)

My advice would be to read up on value investing, which has proven to be a long-term sustainable philosophy of investing with a margin of safety. I notice this method of investing is not really discussed much or advocated in this forum - mostly people talk about dividend investing or "yield" investing.

Do note that yield itself is not an indication of the merits of an investment. The underlying business must be strong to ensure the yield is sustainable, and it also depends on the capital structure of the entity/security and the cash flows it generates.

Understand the investment and risks involved - this is far more important than trying to grow your money. Basically, protection of downside is of greater importance than chasing for upside. Invest with an eye on the business, valuations and cash flows and you will not go wrong.

 

[doody_]

Just wondering, TS do you have any background in finance? I think it's important to have a basic understanding of finance before getting involved in investing.

 

[Dividends Wizard]

$1000 ?

sg pools , rws , mbs .

 

[Hoo8899]

.....
Hoo8899- thanks for your suggestions ! but for now i am not keen to dive straight into investing- would at least like to look into how the market in SG works, for this book i am reading is in USA's context .
However, I have a question, your advice is for me to buy 2 lots- IE , my entire capital of 1k is put into it, wouldnt it be risky?
Or do you mean for when my capital is larger?


----------------------
Based on my reading today, am i right to say that my current investment options is stocks? ( other options is above my capital) . Even so, where can i find a catalogue(if you may) of bonds, stocks, ETF , REIT and indexes?
Do the catalogue also at least provide charts of past growth , etc,?

Lastly, I am thinking of putting my capital into money market fund to grow my capital ( any comments/insights about this?) Because all i know is that it offers a low yield, but at least higher then banks for the short term but the downside could be that the amount deposited is not insured by the government.

TAXES-How would this affect my investment in singapore? Is there a website I can access to find how how taxed investment profits affects me?

(incoherent post- could be updated_

Hi, the rule of thumb is don't put all eggs into 1 basket, but since your 1k can buy only 1 egg, so you have no choice but to put it only in 1 basket. Which basket to choose depending on you, but what I have suggested to you is the basket that is very near to the floor, so even when the basket drop, your egg may still have higher chance to survive. Whether you think this is risky or not, depending on what's your risk tolerance.

I think you are wrong by saying that "other options is above my capital", there are lots of investments which you can play with less than a thousand capital, for instance forex, options, warrants and all other kind of leveraged products. Though most of the indexes and ETFs are priced above $1 (ie. above 1k per lot), but you still can buy them with CFD. But, I would not recommend you to touch all these leveraged and CFD products until you are familiar with them. Those who are playing with leveraged products are somehow known as 先使未来钱 and are highly risky.

Bonds basically you cant buy because is Over The Counter (OTC) and only for institutional with significant amount of investment. So, only a safe-cum-defensive-cum-low volatility stocks fit your capital and risk appetite.

Even so, where can i find a catalogue(if you may) of bonds, stocks, ETF , REIT and indexes?
Do the catalogue also at least provide charts of past growth , etc,?

What is the catalogue that you refer to? I think firstly you must have a target in mind, then go check for more information about that particular target. Using the Decision Tree Analysis will help you to short list some of the potential investment that suit your need.

Money market fund? I don't think your initial capital is sufficient for this. Moreover the return can be as low as $10 a year for you, not very meaningful right.

Last thing about the taxes, all investment profits derived in/from Singapore by individual is not subject to tax. All dividends received from Singapore company is also not subject to tax. Dividends received from foreign company listed in Singapore may be subject to tax depending on the tax regime of the foreign jurisdiction as well as the availability of the Double Taxation Treaty. Normally if shareholder need to pay tax on the dividend, the payer company will notify by letter. Please visit www.iras.gov.sg for more information.