5 Types of Investments Suitable for Beginners
Updated: 13 May 2026
From unit trusts to robo-advisors, there are many investments for beginners. These are five of the best investments for beginners to help you begin.
Written bySingSaver Team
Team
So, you’ve saved up your first pot of gold and you’re ready to grow it. But where do you start? The world of finance is full of jargon, and investing for beginners can feel like learning a new language.
Nowadays, the Singapore market has stabilized with moderated inflation and cooling interest rates. This makes it an ideal time to look beyond traditional savings accounts. Here is your guide to the best investments for beginners to build long-term wealth.
Before you begin: The pre-investment checklist
Before exploring the types of investment, ensure your foundation is solid:
-
Emergency Fund: Aim for 6 months of expenses. With current yields, you can keep this in a high-yield savings account or Singapore Savings Bonds.
-
Insurance: Ensure your Integrated Shield Plan is active to cover healthcare costs.
-
High-interest debt: Clear credit card balances first. With interest rates around 27% p.a., no investment can reliably outperform the cost of this debt.
The 5 best investments for beginners
Mutual funds
Mutual funds are pooled investment vehicles that allow you to invest in a diversified portfolio of assets, such as stocks, bonds, or a mix of both, managed by a professional fund manager.
They offer several advantages that make them attractive, especially for beginners in Singapore;
-
Simplicity: Instead of having to research and select individual stocks, bonds, or other assets, the fund manager handles portfolio construction and management for you.
-
Affordability: Many mutual funds have relatively low minimum investment amounts, making them accessible to those with less capital on hand.
-
Diversification: Mutual funds provide a quick and easy way of diversifying your investment as it is spread across various assets, reducing risk compared to investing in a single stock.
-
Liquidity: Mutual funds are generally highly liquid, making them easy to buy or sell through various platforms in Singapore.
However, like any investment, mutual funds carry risks. The value of your investment can fluctuate depending on market conditions and the performance of the underlying assets. While diversification within mutual funds helps to mitigate risk compared to investing in individual stocks, it's still possible to lose money.
Key considerations
-
Expense ratios: The expense ratio is an annual fee charged by funds to cover their operating expenses, typically a percentage of the fund’s assets. Mutual funds have higher expense ratios than other funds because they are actively managed by a fund manager whose services need to be paid for.
-
Fund manager expertise: It’s worth researching the fund manager's experience, track record, and investment style to ensure it aligns with your investment goals, before you entrust your money to them.
-
Sales loads: Refers to a fee or commission paid to an intermediary (such as a broker or financial advisor) when buying or selling shares to a mutual fund. These can be a percentage of the amount you put into (front-end) or withdraw from (back-end) the fund, or an annual fee (level load). Sales loads are more commonly associated with mutual funds, though not all will have them.
» Learn more: Here’s our guide to investing in mutual funds for beginners
CPF Top-ups (SA and RA)
The CPF system remains a cornerstone of investment in Singapore for beginners. As of 2026, the Special Account (SA) for those below 55 offers a floor rate of 4.0% p.a.
-
Crucial Update: For those 55 and above, the SA has been closed, and funds are now channeled into the Retirement Account (RA), which also earns 4.0% p.a.
-
Best for: Retirement planning and tax relief (up to S$8,000 via the Cash Top-Up Grant).
Diversify your portfolio effortlessly
View our picks for the best brokerage accounts. Start your investment journey today.
Best Brokerage Accounts for Online Stock Trading
Product Name | Hot Reward Pick | SingSaver Reward | Min. Comm. Fee | Min. Trade Fee | Min. Deposit for Rewards | ||
|---|---|---|---|---|---|---|---|
 | Webull Singapore | S$2,437 | S$0 * | 0 % | S$3,000 | ||
 | Plus500 | S$13,599 | S$0 | 0 % | S$1,500 | ||
 | Longbridge | S$1,759 | S$0 | 0.03 % | S$2,000 | ||
 | moomoo SG | Apple AirPods Gen 4 (worth S$199) | S$1,299 | S$0 | S$0.99 /order | S$2,000 | |
 | IG Markets | S$330 | S$0 | 0 % | S$500 | ||
 | OANDA | - | S$16,888 | S$50 | 0 % | S$0 | |
 | IG Trading | S$3,487 | S$10 | 0.1 % | S$1,000 | ||
 | eToro | S$639 | US$1 | - | S$1,000 |
Exchange-traded funds (ETFs)
ETFs are a type of index fund that are traded on stock exchanges like the Singapore Exchange (SGX). Like stocks, they are traded throughout the day on the exchange, giving investors much more flexibility and control over their trading. In contrast, mutual funds and index funds are typically priced and traded only once, at the end of the trading day.
This offers several key advantages for investment in Singapore for beginners;
-
Trading flexibility: Because ETFs are traded throughout the day on the stock market, you can buy and sell them whenever the market is open. This gives you more control over when to invest.
-
Diversification: Like investing in mutual or index funds, ETFs spread your money across many different companies or assets, lowering your risk.
-
Cost-effectiveness: Similar to index funds, ETFs are passively managed. There’s no need for a fund manager to actively pick and choose investments, which keeps costs down.
-
Liquidity: Most ETFs are easy to buy and sell on the SGX or other stock exchanges. This is good if you need quick access to your funds for any reason.
-
Accessibility: ETFs let you invest in various things – not just stocks but also bonds, commodities (like gold), and more. This makes it easier to create a varied investment portfolio, even with limited capital.
-
Transparency: ETFs typically offer daily portfolio holding disclosures, which tell you where your money is going.
Key considerations
-
Trading Costs: While ETFs themselves may have low expense ratios, they do incur brokerage commissions. This can add to your overall cost, especially if you trade frequently.
-
Market Fluctuations: Because ETF prices change throughout the day, you're exposed to market volatility when you trade. You might buy at a higher price or sell at a lower price than you intended.
-
Tracking error: If an ETF follows a market index (otherwise known as an index ETF), you want to take note of its tracking error as well. Just like with an index fund, you want the tracking error of the index ETF to be low.
» Learn more: Here’s our guide to help you get started investing in ETFs.
Real estate investment trusts (REITs)
REITs allow you to own shares of income-generating properties like malls, offices, or data centres without buying the whole property yourself. These SGX-listed companies own and manage the properties and are mandated by law to distribute at least 90% of their taxable income as dividends to shareholders.
This is a primary vehicle for passive income in Singapore, providing regular payouts (usually quarterly or semi-annually) that can be reinvested to compound your wealth.
Key considerations for 2026
-
Sector Dynamics: Understand what the REIT owns. In 2026, Data Centre REITs are thriving due to the AI boom, while Hospitality REITs have stabilized following the full post-pandemic tourism recovery. Retail REITs remain resilient but face higher costs from the tight labor market.
-
Interest Rate Stability: While rates are higher than they were a decade ago, the 2026 environment is one of stability. Lower interest rate volatility allows REIT managers to hedge debt more effectively, which protects your dividend payouts.
-
Gearing Ratios: MAS limits REIT leverage (gearing) to 45% (or 50% if they have a minimum interest coverage ratio). In a 2026 market, look for REITs with gearing below 40% for an extra safety buffer.
-
Environmental Risk: As per new 2026 MAS guidelines, check the REIT’s "Green" credentials. Properties with high environmental risk or poor energy efficiency may face higher taxes or lower valuations in the near future.
-
Tax Treatment: Income distributions remain tax-exempt for individual investors. You do not pay tax on the dividends you receive unless you are an individual trading REITs as a professional business or through a partnership.
-
Brokerage Fees: With the rise of low-cost and digital brokerages in Singapore, many now offer zero-commission trades for SGX-listed REITs, significantly lowering the entry cost for beginners.
Pro-Tip: If picking individual REITs feels overwhelming, look into REIT ETFs (like the Lion-Phillip S-REIT ETF), which allow you to buy a basket of Singapore's best REITs in a single trade.
» Learn more: Take a look at our guide to REITs.
Singapore Savings Bonds (SSBs) and Treasury Bills (T-bills)
If you're looking for safe and straightforward ways to grow your money, SSBs and T-bills are worth considering. Both are backed by the Singapore government, making them low-risk investments.
SSBs offer medium-term investments up to 10 years, with interest paid every six months that increases over time, though typically with lower overall returns than other investments. You can start with a minimum of $500, up to a maximum of $200,000.
In contrast, T-bills are short-term loans, maturing in 6 months or 1 year. You buy them at a discount and receive the full amount back at maturity. The interest rate is determined by an auction, and the minimum investment is $1,000. T-bills also offer high liquidity, meaning they can be sold relatively easily."
Key considerations
-
Investment goals: If you need the money soon, T-bills might be a better fit. If you're saving for the longer term and want increasing returns, consider SSBs.
-
Interest rates: T-bill rates can change, while SSB rates are fixed when you buy them.
-
Accessibility: You can buy both SSBs and T-bills through local banks in Singapore.
In short, SSBs and T-bills are like secure savings accounts. They won't make you rich quickly, but they offer a safe way to grow your money with the backing of the Singapore government.
» Learn more: Get more information from our complete guide to SSBs and our complete guide to T-bills.
Investment apps
Investment apps are user-friendly mobile applications that allow individuals to invest in financial instruments like stocks, ETFs, and funds directly from their smartphones.
These apps are quite popular with beginners for a few good reasons:
-
Easy to get started: Many apps have low minimum investment amounts, so you don't need a lot of money to begin.
-
Ease of use: They're designed to be easy to navigate, even if you're new to investing.
-
Convenient access: You can manage your investments anytime, anywhere, right from your phone.
-
Learning resources: Some apps offer educational tools to help you understand the basics of investing.
Higher-Growth Types of Investment
Once you are comfortable with the basics, consider these best investment ideas for beginners that offer higher potential returns in exchange for market risk.
Singapore Real Estate Investment Trusts (S-REITs)
Singapore is a global hub for REITs. By buying a REIT, you become a "partial landlord" of malls (like Plaza Singapura) or offices.
-
2026 Outlook: With interest rates stabilizing, REITs are seeing a recovery as borrowing costs for properties become more manageable.
-
Why it's great: It provides regular dividends (passive income).
Exchange-Traded Funds (ETFs)
An ETF is a basket of stocks. Instead of picking one company, you buy the whole market.
-
STI ETF: The top 30 companies in Singapore (DBS, Singtel, etc.).
-
S&P 500 ETF: The top 500 companies in the US. This is widely considered one of the best investments for beginners due to its historical 10% annual average return over decades.
Robo-Advisors
Platforms like Syfe, StashAway, and Endowus use algorithms to manage your money. In 2026, these platforms have integrated advanced AI to rebalance portfolios automatically based on global economic shifts. They are perfect for investing for beginners who want a "set and forget" approach.
Key considerations when choosing an investment app
-
MAS regulation: Make sure the app is regulated by the Monetary Authority of Singapore (MAS), so that you know your funds and data are protected. This means it follows certain rules to protect your money.
-
Fees: Pay attention to any fees the app charges, such as trading fees, platform fees, or account maintenance fees. Lower fees mean more money for you.
-
Investment options available: Check what you can actually invest in through the app. Does it offer Singaporean stocks, international stocks, bonds, etc.?
-
User interface and experience: The app should be easy to use and understand.
-
Help and support: See if the app offers customer support or educational resources if you have questions.
-
Security: Make sure the app has robust security measures to safeguard your funds and personal information.
» Learn more: Here are the best investment apps in Singapore for beginners.
About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.