How to Start Investing in Singapore (2025): Beginner’s Guide

The earlier you begin, the more time your investments have to grow through compounding. This guide will walk you through how to start investing in Singapore as a beginner. We'll cover the essential steps, from setting long-term financial goals to choosing investment strategies.

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One of the biggest hurdles for beginner investing in Singapore is the belief that you need a lot of money to get started. However, the beauty of investing lies in the power of compounding. 

Essentially, compounding means your investment returns start earning their own returns, creating a snowball effect over time. Even small, consistent contributions can grow significantly over the long term.

So, if you’re wondering how to start investing in Singapore with little money, the key is to start now. Even if it's just a small amount, building the habit of investing is more important than the initial amount. 

Also, consider how tax-advantaged accounts like the Supplementary Retirement Scheme (SRS) account can further boost your long-term returns, even when starting small.

Additionally, many investment platforms in Singapore offer low or no minimums, making it easier than ever to begin your investing journey.

» More: Learn how to invest in fractional shares

Figuring out how much to invest is a crucial step in investing for beginners in Singapore. This depends on your finances, investment goals, and when you need to reach them. 

A good starting point is to create a budget for a picture of your income and expenses, allowing you to identify where you can free up cash for investing.

» More: How much do you need to save for retirement?

There's no one-size-fits-all answer to how much you should invest. While some advisors recommend a percentage of your income, the best approach is personalised to your investment type.

Then, break your target into smaller, more manageable amounts. For instance, if you need S$100,000 in 10 years, you can calculate the necessary monthly investment accordingly. Many online calculators and financial planning tools can help with these calculations.

Remember, investing in Singapore doesn't require a hefty starting capital. Start with an amount that feels comfortable. You can increase it gradually as your financial situation evolves.

Next, you’ll have to choose where to invest money to get good returns in Singapore. Several options cater specifically to those new to investing, such as robo-advisors, brokerage accounts, Supplementary Retirement Scheme (SRS) and Central Provident Fund (CPF) investment accounts.

» More: 8 CPF investments you can consider in 2025

While robo-advisors are great for hands-off investing, brokerage accounts offer more control. Consider your comfort level and investment goals when making your choice.

To open an investment account with platforms such as StashAway, Syfe, and Tiger Trade, you’ll typically need to follow these steps:

1. Visit the platform's website or download their app

2. Create an account by providing personal details.

3. Complete a risk assessment questionnaire.

4. Fund your account via bank transfer or other methods.

5. Choose a portfolio or start investing in specific assets.

» More: Beginner’s guide to brokerage fees

Choosing the right investment strategy is crucial for beginner investing in Singapore. Two primary approaches are investing for growth and investing for income. Growth investing focuses on increasing the value of your investments over time, while income investing prioritises generating regular cash flow, such as through dividends.

Your ideal strategy depends on your risk tolerance and time horizon. If you have a longer time horizon like retirement, you can afford to take on more risk and prioritise growth. Meanwhile, shorter time horizons like a down payment in a few years call for a more conservative approach.

Finding the best way to invest in Singapore can seem daunting, but understanding the basic investment types is key. Here's a breakdown of some common investment vehicles:

Stocks represent ownership in a company. When you buy a stock, you're essentially buying a small piece of that company. Stock prices fluctuate based on various factors, including company performance, market conditions, and investor sentiment. Investing in stocks offers the potential for high growth but also comes with higher risk. 

Fractional shares also offer an option to own a smaller portion of stock without purchasing the full share, making it an accessible option.

» Learn more: 6 steps to begin investing in stocks

Bonds are essentially loans you make to a company or government. In return, they promise to pay you back the principal amount plus interest. Bonds are generally considered safer than stocks, making them a good option for more conservative investors seeking stable income.

» More: Should you invest in fixed deposits or bonds?

Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. Professional fund managers handle the investment decisions, making them a convenient option for beginners who prefer a hands-off approach. 

» More: How to choose the best mutual funds for your investment portfolio

ETFs are similar to mutual funds in that they hold a basket of assets. However, ETFs trade on stock exchanges like individual stocks, offering greater flexibility and liquidity. They often have lower expense ratios than mutual funds, making them a cost-effective investment option for beginners in Singapore.

» More: Beginners guide to investing in ETFs