You don't need a fortune to start investing

A lot of people think investing is just for the very wealthy, but you can do it by setting aside some money every month.

When many people consider investing, their first thought is of playing the stock market. But when you want to buy shares in a company, there's often a minimum purchase requirement of maybe 50 or 100 shares.

Some markets, such as the New York Stock Exchange (NYSE), do allow individual share purchases. However, buying even just one share in a company that’s already successful can cost you upwards of S$10,000.

But you don’t need to play the stock market or make risky investments in private companies to start building your wealth. A more accessible way to begin would be to invest in a unit trust. It takes an initial investment of S$1,000, followed by S$100 monthly deposits for the next five months – or longer if you wish.

What is a unit trust?

With a unit trust, you don’t have to research individual companies and buy stocks or shares in them. Instead, a professional fund manager carefully chooses shares from many different companies and bundles them together.

You invest alongside many other investors and you get a certain percentage of that bundle depending on the amount of your individual contribution.

By investing in a unit trust, you’ll own small pieces of a lot of different companies. That’s good, because if one company has a bad year, it won’t affect your entire balance as much. It’s a way of making sure you “don’t keep all your eggs in one basket”.

Unit trusts can be packaged many different ways. They can be grouped by market, which means they would include shares from one particular stock exchange, say New York or Hang Seng. They can also be grouped by theme, such as shares from companies involved in property or infrastructure. Choosing different unit trusts will allow you to invest in a field you're interested in, such as technology or healthcare, or even in another country’s economy.

Another big benefit with unit trusts is that you don’t have to micromanage the account or follow industry news, so you can react and buy or sell with lightning speed. A unit trust is managed by a fund expert, who works to ensure the greatest possible return for that trust.

Here’s how you can get started

  • Open a Personal Internet Banking investment account with HSBC
  • You'll need S$1,000 for your initial deposit, and then S$100 a month for the next 5 months. (On months when you have more money, you can invest more if you want. You can also continue investing after the 5 months.)
  • If you want to invest in a unit trust from another country, you’ll need a Foreign Currency Account with that country’s currency
  • Take a Customer Knowledge Assessment (CKA) to show you have knowledge and experience with unit trusts.

 

You can find out more about the unit trusts we offer.

If you’re ready to invest in an HSBC Unit Trust or require more information, get in touch with us.

Disclaimer 

This document is for information only and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. The mention of any investment product or class of investment products ("product") should not be construed as representing a recommendation to buy or sell that product, nor does it represent a forecast on future performance of the product. The information contained on this web site is intended for Singapore residents only and should not be construed as a distribution, an offer to sell, or a solicitation to buy any securities in any jurisdiction where such activities would be unlawful under the laws of such jurisdiction, in particular the United States of America and Canada. The specific investment objectives, personal situation and particular needs of any person have not been taken in consideration. You should therefore not rely on it as investment advice. Before you make any investment decision, you may wish to consult a financial adviser. In the event that you choose not to seek advice from a financial adviser, you should carefully consider whether the investment product is suitable for you.