Mutual Fund Investment Opportunities You Should Consider In Singapore
If you are a Singapore investor, chances are that you have come across multiple investment avenues, such as stocks. However, most investors prefer to strike a balance between good returns and relatively low risk, and this is why many consider mutual funds as a good place to invest their money.
Choosing the mutual fund that best suits your preference might be a bit of a chore because the options in the market have different profiles. It is, therefore, important to understand the different types available in the market, and you can also get a fund manager to help you get a better understanding.
Mutual funds are divided into three categories:
- Bond funds– These are mutual funds that have a relatively high-risk level, but on the flip side, they also offer high returns. The level of risk might be different from one mutual fund to another, but their risk factor is usually higher than that of other types of mutual funds.
- Money market funds– these are usually high-quality mutual funds that are characterized by low risk. They usually focus on short-term fixed-income investments that mature in about six months or less. They include corporate bonds, government bonds, and commercial bills, among others.
- Equity funds or stock funds– These are funds that focus on corporate stocks and are divided into income funds that offer regular dividends and growth funds that do not deliver regular dividends.
Below are some of the Singapore-based mutual funds that you should consider this year and in 2020:
Fidelity Global Technology Fund
Just as the name suggests, this mutual fund focuses on tech investments, particularly investments in technology companies. It also happens to be one of the best investment funds thanks to its numerous years in the market and also its ability to offer strong returns during its existence. Fidelity Global Technology Fund has so far achieved an 8.04% average return. Its minimum entry requirement of just $500 makes it easier for investors to jump on board, although there are still some risks of investors losing their investments.
Aberdeen Singapore Equity Fund
This is another highly successful Singapore-based mutual fund that has received a lot of recognition thanks to its strong performance. Thomson Reuters Lipper recognized the Aberdeen Singapore Equity Fund as one of the top equity funds of the last 10-years. So far, it has achieved an annual return rate of 9.3% from its operations in the past two decades.
Aberdeen Singapore’s portfolio includes some of the top blue-chip stocks in Singapore, and this is has been a significant contributor to its success. The mutual fund achieves decent returns at low risk by carefully adding some listed companies to its portfolio.
UOB United E-Commerce Fund
This Singapore-based mutual fund takes advantage of growth opportunities by investing in offers a mix of foreign and local stocks. Just as its name suggests, it has a keen focus on e-commerce stocks. It also makes it easy for investors by allowing an easily accessible starting minimum of $1,000. So far, this mutual fund has demonstrated reliability and consistency.
Janus Henderson Global Technology Fund
This fund focuses on giving investors opportunities to leverage long-term growth through its diversified portfolio, which mainly consists of tech firms. It also invests in tech companies from all over the world, and this diversified portfolio approach aims to offer an edge over international market trends. It is relatively accessible thanks to a low minimum investment requirement of $1000. Janus Henderson Global has done such a good job maintaining the consistency of its returns that it received a 4/5 rating by the Morning Star.
The Prulink Singapore ASEAN Managed Fund
Prulink Singapore is a reputable fund that happens to be among the top mutual funds in the country thanks to its aggressive investment strategies. Prulink Singapore mainly targets the bonds market through which it delivers consistent gains with low risks. The fund’s annualized returns in 2018 were at 4.9%, while the volatility was 7.06%. This makes it quite appealing to Singapore investors who are looking for secure and consistent gains.
UnitedAsia Pacific Real Estate Income fund
This one is right up there with the mutual funds or unit trusts that deliver the highest yields. Just as indicated by its name, its investments are based on the real estate market not only in Singapore but also across other markets in Asia. UnitedAsia Pacific has been riding on strong momentum over the past one year, and if this momentum continues, then it makes it quite an attractive pick for investors.
UnitedAsia Pacific achieved 0.3% returns in Q1 2018, 0.5% in Q2, and 1.2% returns in Q3 of the same year. Investors expect strong investment returns to continue as the fund continues to execute carefully calculated investments.
LionGlobal Vietnam Fund
This is one of the few mutual funds that focus on both long-term and short-term investment opportunities. It is based in Vietnam, as the name suggests, but it also has operations in other markets, including Singapore, India, and China. Its investments are structured around listed income commodities within those markets.
The LionGlobal Vietnam Fund also ensures diversification in its investments, thus reducing risks. Its minimum investment requirement is $1,000, which makes it accessible to traders. It has delivered exceptional returns over the past few years, and so investors are confident that its strategic investments will continue to deliver strong results even in the future.
First State Regional India Fund
This mutual fund has a strong and diversified portfolio, especially in India. It also has a strong track record courtesy of its many years of experience in the market since its launch in the 1990s. Like some of its counterparts in this list, it is also an attractive fund due to its low investment requirement and low management fees.
First State has also been recognized as one of the top-performing mutual funds over the past decade. Its average returns for the past five years and the past 10-years have been well above 100% for both periods. It is also characterized by low risk, which makes it one of the most attractive mutual funds available.