It’s easier to invest when markets are correcting compared to investing at record highs.
Investors worry they might be buying at the top, which could cause decision paralysis and end up not even getting started on their financial journey.
Consider this example where an investor was afraid of buying DBS Group Holdings (SGX: D05), or DBS shares last year at S$45 because they thought they were buying at the top.
However, strong fundamentals led to the bank’s shares rallying to its all-time high of S$60 on 29 January 2026.
In this article, we show you how you can start constructing a portfolio that allows you to sleep easily at night, without timing the market.
Step 1: Decide What This $20,000 Is For
Before getting started, you need to have a plan.
Do you need income now, or are you looking to compound your wealth long-term?
Your answer, and how much risk you can stomach, will dictate what you buy.
Step 2: Build a Strong Core – DBS Group Holdings (SGX: D05)
Every solid portfolio needs an anchor: a reliable blue-chip company that keeps cash flowing even when the market gets bumpy.
For our first stock, look no further than DBS.
Southeast Asia’s largest bank makes money mainly through lending and borrowing, which relies heavily on interest rates.
DBS has also been making progress in diversifying its business, as seen through growth in the bank’s non-interest fee income.
Spearheaded by its wealth management segment, the continued growth of DBS’s fee income business will provide some support against the headwinds of lower interest rates, which have been hampering its net interest income.
DBS is a fine choice for a portfolio anchor, which should help reduce overall portfolio risk.
The bank has an impressive track record of growing its bottom line and paying a growing dividend over the years, while operating with a conservative balance sheet.
Step 3: Add Reliable Income – CapitaLand Integrated Commercial Trust (SGX: C38U), or CICT
Now that you have a stable portfolio anchor, we can add a company that generates steady dividends to buffer against market volatility.
For this, look no further than CICT.
The largest REIT in Asia, with a portfolio of assets spanning offices and retail malls mostly in Singapore, has provided investors with steadily growing income over the years.
The mall operator’s distribution track record is likely to persist in the future, given its consistent ability to grow its net property income, which is duly returned to shareholders.
Having a company that pays a consistent income can help investors stay invested during times of market turmoil.
Step 4: Include a Growth Engine – Keppel Limited (SGX: BN4)
Having accounted for income, let’s now add a name with decent growth prospects to boost potential capital appreciation for your portfolio.
Keppel has been reinventing itself as a lean asset-light business.
By focusing on infrastructure, connectivity, clean energy, and asset management, the conglomerate is riding some of the biggest growth trends.
Importantly, some of these operations provide recurring income and have higher profit margins than some of its previously divested businesses.
Profit from the new asset-light segment rose 39% year on year (YoY) in 2025.
Striking a rare balance, Keppel is handing cash back to shareholders through buybacks and dividends while still reinvesting capital into its business. This represents a “best of both worlds” setup.
Step 5: Add a Defensive or Diversifying Position – Frasers Centrepoint Trust (SGX: J69U)
Finally, you can consider adding a defensive element to your portfolio to provide a buffer during market pullbacks.
Frasers Centrepoint Trust, or FCT, is a perfect fit.
Owning suburban heartland malls like Northpoint City and Causeway Point, where people spend on necessities, makes FCT a reliable shock absorber for your portfolio.
The REIT is anchored by defensive tenants such as NTUC FairPrice and Breadtalk, which sell products that are still required in a downturn, providing resilience for FCT’s income and distribution.
This buffer against cyclicality acts as a nice foil against DBS, CICT, and Keppel.
How This Portfolio Fits a 2026 Market Environment
A diversified portfolio with an equal allocation across all four names gives you balanced exposure across income, growth, and defence.
Better yet, this portfolio design allows you to sidestep market timing, given its overall balance, which should help you start getting invested.
Common Mistakes to Avoid With a $20,000 Lump Sum
In investing, instead of finding the perfect stock, it might be more worthwhile to avoid making mistakes which could harm your returns.
Some common mistakes to be mindful of include chasing what has already performed really well, as well as not diversifying and concentrating your portfolio into a single name.
Get Smart: Build Balance First, Returns Follow
You don’t have to time the market perfectly to start investing.
With a balanced framework, you can allocate S$20,000 across multiple names that give you exposure to growth, income, and resilience, and start your investing journey without worries.
If you’re nervous, confused, or worried about buying your first stock, then our latest beginner’s guide to investing can help. It’s easy to read yet packed with valuable insights. Download it for free today, and buy your first stock in the next few hours. Click here to get started.
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
Disclosure: Wilson.H does not own shares in any of the companies mentioned.
