Gone are the days when investing in financial markets required complex setups and a multitude of devices. In today's digital age, the only things a fledgling investor will need to manage their assets are a smartphone and a reliable internet connection. That means it’s now quite easy for a prospective investor like you to jump into the world of modern investments and navigate it with full confidence using contemporary mobile apps and online investing platforms.
If you have a smartphone bundled with the cheapest mobile plan Singapore carriers offer, here are five types of investments that you’ll be able to manage with it:
1) Stocks and Equities
When you invest in stocks or equities, you essentially become a shareholder in a particular company. That entitles you to a share of the company’s profits and losses. This form of investment is immensely popular around the world due to its potential for substantial capital growth.
Stocks are a gateway to participating in the success of individual companies. They offer the possibility of significant gains. But any new buyer should also know that stock trading comes with inherent risks. For one, stock prices can be highly volatile given that they tend to fluctuate with market sentiment and economic conditions. For this reason, it’s not uncommon for stock owners to experience both gains and losses in a relatively short period.
As investments, stocks are typically seen as most suitable for those with a longer time horizon, as stocks tend to perform better over extended periods. Those who are willing to accept some level of risk—and, more importantly, who believe in the growth potential of a specific company or sector—often choose to pool a part of their resources into stocks.
It’s very convenient to manage your stock investments using a mobile phone. Brokerage apps in Singapore provide their customers with comprehensive platforms where you can research stocks, access real-time stock market data, execute buy and sell orders, and monitor your portfolio's performance—all from the palm of your hand. There are also platforms that allow you to set price alerts and use mobile trading tools to make informed and timely decisions about your stocks. To make the most of your stock investments, diversify your portfolio to spread risk. It’s also advised to stay informed about market trends and consider a long-term perspective for each of the stocks you end up investing in.
2) Exchange-Traded Funds (ETFs)
Exchange-Traded Funds or ETFs pertain to investment funds that cover a diversified portfolio of assets, for example stocks, bonds, or commodities. Much like individual stocks, ETFs are traded on stock exchanges. This makes them a popular choice for investors seeking diversification, variety, and flexibility from their trading experience.
ETFs offer investors opportunities to diversify their holdings without necessarily needing to purchase individual assets piecemeal. They provide exposure to various market sectors, regions, or asset classes in a single investment. The diversified nature of many ETFs can help spread an investor’s risk and make it more manageable. As such, this investment vehicle is a suitable option for those who want to invest in a broad market or specific sectors without the hassle of selecting individual assets.
Managing ETFs using a mobile phone is a straightforward process. Many investment apps in Singapore offer access to a wide range of ETFs. You can research, buy, and sell ETF shares, as well as monitor your portfolio's performance using your phone. To succeed with ETF investments, consider your long-term goals, choose ETFs that align with your overarching investment strategy, and monitor their performance periodically.
3) Mutual Funds
Mutual funds pool money from multiple investors. This money is then used to invest in a diversified portfolio of stocks, bonds, and other securities. One main feature of a mutual fund is that it’s typically handled by a professional fund manager. Your chosen fund manager is responsible for making decisions on your behalf.
There are several advantages to putting your money into mutual funds. These include access to diversified assets from the get-go and the ability to work with a financial expert who can help you optimise your succeeding investment decisions. Mutual funds are particularly suitable to investors seeking a more “hands-off” approach to investment management. The best part is, you can easily access a wide range of mutual funds through investment apps in Singapore.
To get started with mutual fund investments, research different funds based on your financial goals and risk tolerance. Consider factors like fund fees, historical performance, and your potential fund manager's track record. Once you've selected the right funds, you can purchase shares, monitor your investments, and make adjustments as needed all through your mobile device.
Bonds are debt securities that are issued by governments, corporations, or other entities to raise capital. When you buy a bond, you're essentially lending money to the issuer in exchange for periodic interest payments. You can also expect the return of your money at face value upon the bond’s maturity.
This type of investment is known for its stability, income generation potential, and relatively low risk compared to other investments like stocks. Other benefits include regular income at steady intervals, capital preservation, and a hedge against stock market volatility.
Managing bonds via a mobile phone is quite convenient, as many investment platforms in Singapore provide access to a variety of bonds. You can research different bond offerings, purchase bonds, and track their performance at your convenience using your smartphone. To maximise your bond investments, consider factors like the bond’s credit risk, interest rate fluctuations, and your investment horizon whenever you purchase a new one.
5) Savings and Money Market Accounts
Savings and money market accounts are bank accounts designed to help individuals save and earn interest on their deposited funds. These accounts offer safety and liquidity, making them suitable for those seeking a low-risk place to park their money while earning interest. Savings accounts typically have lower interest rates, but they’re also highly liquid and will allow you to access your funds whenever you need them. On the other hand, money market accounts often promise higher interest rates than regular savings accounts while maintaining accessibility over your money.
It’s now possible to keep tabs on your returns from your savings or money market account via a mobile banking app. Most banks in Singapore give their customers access to banking apps that allow them to check their account balance, transfer funds, and even set up automatic savings plans whenever they wish. These accounts are excellent options for emergency funds or short-term investment goals. They’re also an ideal place to keep your cash while earning a bit of interest. To get an account that serves your investment goals, consider factors like interest rates, account fees, and ease of access.
Tech and finance are now quite closely entwined, and there’s no better example of their close relationship than modern investment options. It’s a great time to delve into investments for the first time, as they’re now easier than ever to track using just your phone. Choose your investment channels wisely and, above all, embrace the power of mobile technology to help you build a brighter financial future for yourself and your loved ones.