Growing My Money with Syfe

Grow Your Money

Recently, I have found it to be harder to find place to invest or grow my money. I have made it a habit to invest 15% of my monthly salary but sometimes, the stock market does not provide that kind of opportunities.

For example, I have been trying to accumulate Manulife US REIT over the past few months but sometimes the stock price wasn’t just right or satisfactory for me to buy. The share price of Manulife US REIT went up instead which means the current dividend yield goes lower, making it less unattractive to buy.

Manulife US REIT Share Price 28 May 2021

The other problem I had was the lack of time. I used to run my dividend screener to identify a list of dividend stocks. From there, I narrowed down by analysing the financials and business fundamentals by flipping through their annual reports.

The growing demands from the company that I am currently working at means spending more time on work and less personal time.

Can I outsource my investing?

I asked myself “Can I outsource my investing?”. That is where auto investing came across my mind. Auto investing is not something new. It has been around for a few years. When it comes to auto investing, OCBC RoboInvest, Endowus, Singlife and Syfe are names that I am familiar with.

I remembered Syfe whereby there is no minimal amount to start with, low fees and their methodology is to manage risks first over returns.

A quick browse on their website have shown how fast they have grown in a year. They have a wide range of portfolio to choose from.

Syfe portfolio objectives

At this point of writing, I am less interested in REIT+ since I have enough REITs in my own stock portfolio. I am also not looking for a cash management portfolio (Cash+).

Which One? Global ARI versus Syfe Core

Now, the big question is which one? Should I opt for Global ARI or Syfe Core?

Syfe explained the differences in detail in this article (Read more: Understanding Our Core Portfolio Strategy)

Taken from Syfe’s website:

Both Global ARI and Core hold stocks, bonds and gold. But with Global ARI, the asset allocation can dynamically change in response to the risk environment, and can be significantly different from asset allocation targeted benchmarks.

Global ARI versus Syfe Core

Syfe Core Portfolios

Core Defensive – Focused on long term capital preservation. Average annual return (Last 8yrs) : 4.86%

Syfe Core Defensive

Core Balanced – Focused on generating better returns while balancing risk. Average annual return (Last 8yrs) : 7.26%

Syfe Core Balanced

Core Growth – Focused on maximising risk- adjusted returns. Average annual return (Last 8yrs) : 11.41%

Syfe Core Growth

Growing My Money with Syfe

Which portfolio to choose really depends on your risk appetite. For myself, I am opting in for the Core Growth portfolio rather than the Core Balanced portfolio.

Equities are known to provide higher returns than bonds. This is also the reason Core Growth has a higher allocation of equity as compared to bonds and I am perfectly comfortable with it.

“If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffet

What can you invest with 500 Dollars?

invest with 500 Dollars

What can you invest with 500 dollars? For working adults like us, it is not a feat to folk out a minimum of 5K for a fixed deposit placement. If you have a higher risk appetite, you can invest 5K into stocks or bonds.

What about those that just started out working? Their starting monthly salary is usually lower than 5K. In my opinion, setting aside the minimum amount of S$500 is a good way to get started to grow your savings. If you will like to grow your S$500, below are some of the options that I found.

ICBC Fixed Deposit

Needless to explain, fixed deposits are simple to understand. You lock in your cash with the bank for a fixed time period such as 1, 3, 6, 12 months. Upon maturity, you get back your money with the interests earned.

ICBC is one bank or perhaps the only bank that I found that let you do a fixed deposit placement with only a minimum of S$500.

ICBC Fixed Deposit Interest Rates 25 Nov 2020

Based on the above rates, if you decided to do a 12 months fixed deposit placement of S$500 via E-Banking, the interests you will receive upon maturity is S$3.75.

Singapore Savings Bonds

The next option to consider is the Singapore Savings Bonds. The minimum amount is S$500 but you have to pay an administrative fee of S$2 every time you make a purchase of the Singapore Savings Bonds.

The latest issue of the Singapore Savings Bonds (GX20120T) offers you an effective return of 0.24% p.a. if you held it for 1 year. That is a return of S$1.20.

Not too bad already, S$1.20 can buy you a cup of Kopi at the coffee shops.

GIGANTIC or Singlife Account

GIGANTIQ is a single premium, yearly renewable, non-participating universal life plan by Etiqa that gives you a guaranteed return of 2.0% per annum on your first S$10,000 for the first year. Any amount above S$10,000 earns you 1.0% per annum for the first year. The minimum amount to get started is S$50. For S$500 deposited with GIGANTIC for 1 year, the return you will receive is S$10.

Similarly, Singlife is a capital guaranteed insurance savings plan that gives up to 2% p.a. returns. The minimum amount to get started is S$500. For S$500 deposited with Singlife for 1 year, the return you will receive is S$10.

Syfe

If you have a higher risk appetite, you can choose to explore Syfe.

Syfe is a digital wealth manager licensed by the Monetary Authority of Singapore (“MAS”) under a Capital Markets Services (“CMS”) License.

There is no minimum amount to start investing in any of their portfolios.

Syfe Portfolio Types

I hope the above provide enough options for those that can only set aside S$500 but do not know where to get started.

“If you don’t find a way to make money while you sleep, you will work until you die. – Warren Buffet”