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    Getting Started

    How to Start Investing in Singapore with S$1,000

    S$1,000 may not seem like much in today's inflationary environment, but it's enough to start investing in the stock market. This guide will show you practical steps on how you can invest with just S$1,000.
    Joanna SngBy Updated:3 Mins Read

    Investment Options for Beginners

    Here are the best ways to start investing in Singapore with your first S$1,000.

    1. Build a Portfolio of Dividend Stocks

    Allocate your S$1,000 to dividend-paying stocks for long-term investments. Singapore’s market offers established companies known for consistent dividend payouts, particularly in sectors like REITs and banking. These dividend stocks offer both regular income and potential growth, making them ideal for new investors.

    1.  Exchange-Traded Funds (ETFs) 

    ETFs allow you to invest in a diverse range of stocks or bonds through a single fund. Think of it as a “basket” of investments. For example, the Straits Times Index ETF tracks the 30 largest companies listed in Singapore. ETFs are low-cost and an excellent choice for beginners seeking diversification. 

    1. Regular Savings Plan

    Regular savings plans, offered by banks like DBS, allow you to invest a fixed amount each month in ETFs or unit trusts. This approach, known as dollar-cost averaging, helps mitigate the risk of market volatility by spreading out your investments over time. You may start investing via regular savings plan from as little as S$100 a month.

    4. Singapore Savings Bonds

    If you prefer a lower-risk option, Singapore Savings Bonds are a great way to earn steady returns. They’re fully backed by the Singapore government, with attractive interest rates over 10 years. The minimum investment amount for Savings Bonds is S$500.

    Practical Investment Steps 

    Knowing where to invest is crucial, but understanding how to start investing is equally important. Here’s a simplified step-by-step guide to get you moving. 

    Step 1: Choose an Investment Platform 

    Select a platform that suits your needs. The platforms for Singapore investors include:

    • Brokerages such as iFast, Moomoo or Tiger Brokers for stock investing.
    • Banks for Regular Savings Plans.

    Step 2: Open an Account 

    Most platforms offer quick and seamless account setup. You’ll typically need identification documents (e.g., NRIC or passport) and proof of residence. Online options mean you may not even need to leave your home. 

    Step 3: Start Simple with Diversification 

    Instead of putting your entire S$1000 into one stock, spread your investment across different asset classes such as index funds and bonds. This diversification reduces your risk exposure. 

    Get Smart

    Successful investing goes beyond financial mechanics — it’s about cultivating the right mindset and habits. Set realistic expectations by understanding that investing is a gradual process of building wealth, not a get-rich-quick scheme.

    Learn fundamental market terms like compounding, dividends and volatility. Many investment platforms offer free educational resources to help you get started.

    First-time investors: We’ve finally released our Beginner’s Guide. Read it in an afternoon, follow the principles, pick an investing style and buy your first SGX stocks within the next few hours! Click here to download it for free.

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