Investing from Singapore

Due to the availability of a diverse range of financial products, investors in Singapore have the opportunity to build a diversified portfolio using traditional Equity, Bond ETFs in line with the Bogleheads philosophy (due to the paucity of index funds).

However, investors should also be aware that there are a range of alternative investment options, robo advisors, access to DFA funds etc that could also contribute to a diversified portfolio. This page will attempt to give brief overview of these as well as the traditional 3-fund, diversified portfolio approaches in an effort to aid investors.

Singapore savings accounts
Bank accounts in Singappore are insured upto 75000 SGD.

However, Investors looking to save the old fashioned way i.e. "cash in the bank" don't have too many options due to the extremely low interest rates paid by banks. On average, most banks pay approximately 0.05% on cash held which does not hold up well against inflation.

As of 2019, the highest "no frills" savings rate is offered via the CIMB Fast saver account which pays 1% p.a. on a min. deposit of 1000 SGD.

There are options to earn higher interest via various "hurdle accounts" offered by various banks which pay higher interest only if various conditions are fulfilled (such as min. spend on a related credit card, balance in a brokerage account, linked insurance policy/monthly increasing balances etc.) Investors may considers these if they have higher cash needs/like to consolidate their spending through a single bank. More research can be done via each bank's website.

Key taxation considerations
Singapore has a favorable tax regime for most investors who enjoy flexibility in terms of access to various products. Hence the main concern for most investors is Witholding Taxes levied on foreign dividends/interest payouts. Please refer the section on US Witholding taxes for more details.

Currently, there is no tax payable on:


 * 1) Interest from Fixed Deposits
 * 2) Capital Gains on shares in Singapore
 * 3) Interest paid out by bonds (or debt)
 * 4) Dividends under the following criteria:
 * 5) Dividends from resident companies listed on the Singapore Stock Exchange, as shown in the statement from Central Depository Pte Ltd (CDP)
 * 6) Dividends from share buyback through Special Trading Counters (STC)
 * 7) Dividends from private resident companies
 * 8) NTUC Fair-Price dividends (except for dividends received through co-operatives)
 * 9) Singapore dividends from approved CPF investment Scheme agent banks, as shown in the Annual Dividend Statement (ADS)
 * 10) Singapore dividends from unit trusts

As for dividends from foreign sources, these are exempt on individual securities unless subject to the below.

However, the following dividends are subject to income tax:


 * 1) Dividends paid by co-operatives;
 * 2) Foreign-sourced dividends derived by individuals through a partnership in Singapore. Conditions may apply. For more details, please refer to Tax Exemption for Foreign-Sourced Income;
 * 3) Income distribution from Real Estate Investment Trusts (REITs) derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.

Note on Real Estate: Please also note that Rental income from property is taxable as well gains on sale of property. This is a popular mode of investment among many older investors in Singapore and concerned individuals should take note.

How to get started investing
Section: DIY Investing in Singapore

Brokerages
Introduction to the CDP CDP vs Custodian Brokerages

List of active Brokerages:
 * Interactive Brokers
 * Saxo
 * TD Ameritrade

Local:
 * Fund Super Mart (FSM)
 * iFast
 * Phillips Securities
 * CIMB i*trade
 * DBS Vickers
 * UOB Kay Hian
 * OCBC Securities

Getting started with Equities

 * Introduction to The STI
 * ES3
 * G3B
 * Singapore Listed ETFs
 * GLD
 * Lion-Philip S REIT (CLR)
 * NikkoAM STC REIT
 * Philip SG income
 * Global ETFs

Note on US ETFs for non-US persons: Investing from Singapore using the Boglehead philosophy presents some challenges due to the lack of a tax treaty with the US.

Irish Domiciled Equities (samples):
 * SWDA
 * EIMI
 * VWRA

Getting started with bonds
Local Bond ETFs:
 * A35
 * MBH
 * N6M
 * O9P

Singapore Savings Bonds:
 * Retail Bonds:
 * Astrea
 * Temasek

Note on CPF:

Global Bond ETFs (samples):
 * AGGU
 * IUAA

Sample portfolios

 * 3 fund portfolio


 * Traditional Investments
 * Alternative Investments
 * Retirement Planning

Robo Advisors
There are a number of Robo Advisors that have come up in Singapore since 2016-17 built on the model of Betterment and Wealthfront in the US promising low cost diversification to investors by investing in overseas (typically the US market) for fees ranging from 0.5% - 1%.

Investors who wish to not do DIY may also consider these options. Some of the robo advisors currently active as of 2019 include:


 * Stashaway
 * Autowealth
 * Smartly
 * FSM MAPS
 * Philip Smart Portfolio
 * Kristal.AI
 * Syfe
 * Squirrel SAve

Some banks have also launched roboadvisor services to various consumers although the fees tend to be a little higher. Some examples include:


 * OCBC Roboinvest
 * UTrade Robo
 * DBS digiportfolio (limited to high net worth investors for now)
 * Connect by Crossbridge (Also limited to HNIs only)

Investors also have access to Dimensional Fund Advisors as of 2019 through various full service, financial advice platforms such as:


 * Endowus
 * MoneyOwl
 * Providend

Alternative lending
Due to the Central bank's encouragement of fintechs in Singapore, there is a vibrant community of Peer to Peer and Alternative Lending firms that invest in a range of Assets such as move financing, trade bill discounting as well as SME loans etc.

Investors should exercise due diligence before investing in these firms as higher returns may be enticing but lead to higher risk. AS of 2019, some examples include:


 * Co Assets
 * SeedIn
 * Minterest
 * Funding societies
 * Moolah Sense
 * Capital Match