Note: It was announced in November 2023 that MoneyOwl will be acquired by Temasek Trust to serve communities under a re-purposed model, and will move away from direct sale of financial products. The article is retained with original information relevant as at the date of the article only, and any mention of products or promotions is retained for reference purposes only. 

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An exclusive MoneyOwl blog series where you write in with your personal finance questions and our team will be on-hand to assist you. 

Question: What can I invest with my SRS?

“There are many instruments we can invest in using our SRS monies. Depending on our time horizon and risk appetite, there will be something suitable for growing our SRS monies. We can choose to invest in Stocks, Unit Trusts (UTs), Exchange Traded Funds (ETFs), Real Estate Investment Trusts (REITs), Bonds, Singapore Savings Bonds (SSBs), Insurance products/Annuities, and Fixed Deposits. Some of these instruments may require a separate Central Depository Account (CDP) if you haven’t already opened one, to transact.

At MoneyOwl, we have a range of SRS approved investment portfolios to suit various risk profiles – find out more here.” – Financial Literacy Trainer Albert

Question: To maximise the reliability of returns for the next 5 to 7 years, what kind of investments should we invest in? 

“Instead of maximising ‘returns’, it is recommended to maximise ‘reliability’ of returns instead. Decades of history and studies have shown that investing long term and broadly in a 100% equity but globally diversified portfolio without forecasting or timing gives you the best probability of achieving reliable capital appreciation returns that beats inflation (>6%). It’s cheaper to invest passively compared to being actively in and out of markets as you may run the risk of excess trading costs.” – Solutions and Investment Specialist Jason

Question: The market is so scary and unpredictable now. Should we still invest?

“Market volatility is inevitable. It’s the nature of the markets to move up and down in the short-term. Trying to time the market amidst all the volatility is extremely difficult. One solution is to maintain a long-term horizon and make investing a pursuit of happiness. History has shown us that the global economy will always grow and improve over time. A balanced, globally diversified portfolio of stocks and bonds would be more likely to withstand the ups and downs of the market, with the bonds allocation providing a cushion against short term volatility and the equities portion providing capital appreciation potential in the long term. ” – Solutions and Investment Specialist Jason

Have a question of your own? Write in to askmeanything@dev.moneyowl.com.sg and look out for our Moneyowl answers in upcoming months. We also have a live AMA session on Instagram – so follow us now for more updates!