There are not many city-states around the world but Singapore (a gorgeous island situated in the core of Asia) is one of them. Although this island may not be known for having many natural resources, it is known for its strategic location, outstanding infrastructures, and amazing economy. These features have transformed Singapore from a deserted island to a regional hub that attracts people from around the world to trade.
Singapore is considered second to only Hong Kong when it comes to countries which are referred to as the 2nd freest economies around the world. Singapore is regarded by many to have one of the best emerging economies in the world. Tourism, construction, banking and finance, petrochemicals, pharmaceutical and biomedical and logistics are the most thriving industries in this country.
Among the many economies that make up the ASEAN Exchanges, Singapore is considered to be one of the most thriving. The ASEAN exchanges are made up of several exchanges including the Indonesia Exchange, Bursa Malaysia, Stock Exchange of Thailand, Ho Chi Minh Stock Exchange and the Singapore Exchange etc.
This collaboration was implemented with the aim of providing a capital market known as ASEAN that is interlinked through several features. These features include trading equity markets, investments in higher cross-border numbers and intra-ASEAN money mobilization.
Hence, the major way you can invest in the listed Singapore companies is through the stock market of Singapore.
Reasons You Should Invest in the Stock Market of Singapore
Here are a few reasons why investing in the stock market of Singapore is a great idea:
- You will avoid tax on capital gains when you invest in the stock market of Singapore.
- Ranking No 2 among the freest economies in the world implies that you will enjoy easy access to information and capital.
- You will be investing in one of the nations that is considered most worthy of credit in Asia and the world at large.
- You do not have to be afraid of price changes in the stock market as a result of political instability. The transparency of government policies makes investing in the stock market of Singapore worth it.
- One of the many benefits of investing in this stock market is its economic diversity. Visit One Visa Pte Ltd to learn more.
- The stock market of Singapore is the foreign exchange with the highest level international transactions in Asia. It boasts of having more than 39 per cent of its companies enlisted on the foreign originating SGX.
Investing your funds in the stock market of Singapore gives you the access you need to enter and broaden your investment portfolio in one of the most robust world economies.
How You Can Invest in the Stock Market of Singapore
There are different ways that you can select potential investments when investing in the stock market of Singapore. A lot of investors use either of these methods depending on the situation they find themselves in.
The reason is that these methods have their strengths and weaknesses. This implies that there are times that a given method will be the best way to select potential stock and when the conditions change, that same method may be the worst.
Below are five proven ways that you can invest in the stock market of Singapore:
- Turtle Method: Ever heard the popular saying “slow and steady wins the race”? Well, that is the most outstanding characteristic of this method. In this method, the aim is for long-term gains. Hence, any stock you pick should have the potential of rising up in a few years. You will find bonds from investment grades and blue-chip stocks among the assets under this method.
- The Growth-Investing Method: This method is quite different from the first. The aim of this method is to find stocks that are low in price and have a tendency to grow. This allows you to sell high a while after purchasing low. You will find the small-cap stocks under this method.
- Investing in Value Method: There are several reasons why any market can have some errors. The aim of this market is to purchase stocks that are priced under its intrinsic value. Afterward, you sell as soon as the errors are corrected by the market. Undervalued Stocks fall under this category.
In conclusion, investing in the stock market of Singapore opens the door for you to have a stake in a country that is considered to have the fastest-growing economies around the world.