It’s all about the money: 9 in 10 Singaporeans need more investment knowledge

Singapore Business Review/30 November 2017

Half of them plan to invest their disposable income next year.

Almost all or 94% of Singaporeans feel the need to improve their understanding of investments, investment manager Schroders revealed.

According to its Global Investor Study, when it comes to their disposable income, the number one priority for people in Singapore next year is to invest it in some way. About 30% plan to invest in stocks, whilst 20% prefer to leave their cash in the bank or at home.

Schroders also identified investors’ priorities for their disposable income and found 50% will invest, 20% will save, 10% will spend, 11% will pay off debt, and 9% will do other things like invest in their own business.

Meanwhile, the uncertainty surrounding current international politics and world events does not appear to be putting people off investing.

Almost half at 48% say they don’t let politics and world events detract from their investment objectives. A majority of 68% are more positive and see world events as investment opportunities. About 35% don’t see long-term implications for investors.

However, many have become more risk-averse.

“This suggests there is a level of confusion in Singapore surrounding how to take the right amount of risk to achieve a desired outcome,” Schroders said.

The firm added that this is reflected in the high return expectations people have. ABout 41% expect a 5-9% return and 31% expect a 10-19% return.

The average return expectation is at 9.1%, which is higher than the 7.2% annual global average stock market returns since 1987.

Moreover, the way in which people are making and managing their investments has been changing, with technology playing a greater role.

When managing bank accounts, Gen X investors use technology the most at 77%, followed by millennials at 75%, and baby boomers at 74%.

When choosing investments, Gen X investors also lead the way at 62%, followed by millennials at 60%, and baby boomers at 50%.

When managing investments, 71% of Gen X investors use technology, whilst 65% and 57% of millennials and baby boomers do.

 

News Source: Singapore Business Review