Li Huijing, Head of Partnerships & Investments, notes that while fractional shares offer greater accessibility and flexibility, investors should be aware of several risks. 

These include higher transaction costs, lower liquidity, potentially less favourable execution prices, limited shareholder privileges, and the risk of insufficient diversification when investments are concentrated in one or two stocks.

She also weighs the pros and cons of regular investment schemes versus stock selection.

For most investors, she suggests an 80/20 allocation approach—placing about 80% into globally diversified funds through regular investments for long-term, disciplined growth, and allocating the remaining 20% to individual stocks or ETFs based on personal views.