Invest in Singapore equities

Hi Mr. Tan,

Currently, I have some money sitting in POSB savings account which I do not need it for the next few years.

I am thinking of parking some of this money in the NTUC Income Trust fund. I understand from the company website that the fund's average performance since its inception in 1994 is 9% per annum.

What is your opinion of this fund since it was started during your tenure as its CEO? Best

REPLY

This fund is largely invested in Singapore stocks and bonds, and have a fairly modest expense ratio. It is all right to invest in this fund, if you are happy with the current level of the Singapore stockmarket.

My preference is to invest in the STI Exchange Traded Fund, which has a similar risk profile, lower expense ratio and is probably more flexible.

If you have a stockbroker, you can ask them about this fund. If you do not have a stockbroker, then you can invest in the Trust Fund.

The Trust Fund performed well in recent years due to the strong stockmarket. You will find that the STI EFT performed much better. However, past performance should not be taken as an indication of future performance.

As a general rule, you should expect a return of 6% to 8% on equities over a long period in the future and a lower return on bonds.