Best Mutual Funds And How To Invest For Singapore Investors
Updated: 25 May 2026
Written bySingSaver Team
Team
The information on this page is for educational and informational purposes only and should not be considered financial or investment advice. While we review and compare financial products to help you find the best options, we do not provide personalised recommendations or investment advisory services. Always do your own research or consult a licensed financial professional before making any financial decisions.
Saver takeaways
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Investing in the best mutual funds singapore has to offer can be done seamlessly through various platforms, including online brokerages, digital wealth platforms, and local banks.
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When selecting a fund, pay close attention to expense ratios and the fund's historical performance in the Singapore market.
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Consider your risk tolerance and financial goals before choosing a fund, especially when evaluating historical mutual fund returns singapore products have generated.
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For beginners, starting with diversified mutual funds is key to minimizing risk, helping new investors build a solid foundation while navigating the changing macroeconomic landscape.
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Understanding what a mutual fund is and how it aligns with your long-term financial planning is vital to building sustainable wealth.
>> Read: Best brokers for mutual funds
Most popular mutual funds in Singapore
When looking at mutual funds gaining traction among Singapore investors, several established options stand out. We've focused on funds with accessible entry points, reasonable costs, and a track record of strong potential returns. These funds have demonstrated long-term appeal within the Singaporean investment landscape:
| Fund Name | Symbol | Trailing Returns (Historical Asset Base) |
| 1. Mercer Global Small Cap Equity Fund | 0P0001KURQ.SI | Managed Global Allocation |
| 2. ChinaAMC China Focus SGD Acc | 0P0001BHO3.SI | Regional Focused Equity |
| 3. LionGlobal Singapore Trust SGD Acc | 0P00006G00.SI | Domestic Blue Chip Core |
| 4. Eastspring Investments Unit Trusts - Pan European Fund | 0P00006Q05.SI | Developed European Equities |
| 5. Wellington Strategic Eurp Eq SGD S AcH | 0P0001Q9OC.SI | Currency-Hedged Active Equity |
| 6. PineBridge Global Focus Equity A5HDC | 0P0001T4KB.SI | Diversified Global Equity |
| 7. HSBC Life Emerging Markets Opps Fd | 0P0000X6H8.SI | High-Growth Emerging Markets |
| 8. AIA Emerg Mkts Equity | 0P000090O8.SI | Institutional Broad Selection |
| 9. AIA Growth Fund | 0P00008T6G.SI | Core Local Capital Appreciation |
| 10. GMO Quality Investment ZH SGD Acc | 0P00006OE7.SI | Global Defensive Quality |
Note: Short-term Year-to-Date numbers fluctuate daily; investors should look closely at 3-year and 5-year annualized mutual fund returns singapore metrics in fund prospectuses before allocating capital.
How to start investing in mutual funds
If you are ready to learn how to invest in mutual funds singapore options effectively, take a look at our comprehensive guide below:
1. Decide on whether you want to invest in active or passive funds
Your first choice is a crucial one: Should you aim to beat the market, or simply track it? This decision significantly impacts your costs, potential returns, and the level of involvement required in managing your investments.
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Active funds (traditional mutual funds or unit trusts) are professionally managed by fund managers who actively buy and sell assets to try and outperform a target benchmark index.
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Passive investing, on the other hand, is a hands-off approach that tracks an index. Passive funds, such as index Exchange-traded Funds (ETFs), typically boast lower fees and operate with tight cost efficiency.
For a robust mutual fund investment singapore beginners strategy, many opt to blend both: utilizing passive funds for broad market exposure and selective active mutual funds to capture specialized alpha or unique regional sectors.
>> Read: What are exchange-traded funds
2. Calculate your budget for investing
Before diving into your first mutual fund allocation, determine how much capital you can comfortably commit without touching your emergency fund. Keep in mind that Singapore’s current macroeconomic backdrop requires vigilance; the Monetary Authority of Singapore (MAS) projects core inflation to average between 1.5% and 2.5%, meaning cash left idle in low-yield accounts risks losing purchasing power.
Mutual funds often have accessible minimum investment thresholds, frequently starting from a few hundred to a few thousand Singapore dollars. Factor your risk profile into this budget. While younger investors might lean toward higher-risk, capital-growth equity funds, individuals approaching milestone financial goals may favor capital preservation.
>> Read: The best brokers for mutual funds
3. Decide where you should buy the mutual funds
In Singapore, you enjoy excellent flexibility when assessing how to buy mutual funds singapore products. You can access them through:
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Online Brokerages & Fund Supermarkets: Offer expansive fund selections, zero sales charges on entry, and highly competitive platform fees.
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Traditional Banks: Offer a seamless, consolidated view alongside your savings accounts, though you must keep an eye out for potential transaction loads.
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Robo-Advisors & Digital Wealth Platforms: Provide algorithmic portfolio construction using underlying mutual funds or cash management layers tailored to specific risk metrics.
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CPF/SRS Investment Schemes: You can deploy your Supplementary Retirement Scheme (SRS) or CPF Ordinary/Special Account funds into CPFIS-approved mutual funds to optimize retirement yields.
When choosing a platform, evaluate Cost (brokerage fees and platform custody fees), Available choices (access to local, regional, and global fund houses), the quality of Tools provided (portfolio analytics), and general Ease of use.
>> Read: How to pick the best mutual funds
4. Understand the mutual fund fees
Regardless of your structural strategy, fund management companies levy recurring fees for administration and operation, compressed into a single figure known as the Expense Ratio. For instance, an expense ratio of 0.75% means you pay S$7.50 annually for every S$1,000 invested. These fees are deducted directly from the fund's asset value, directly impacting your net returns over time.
>> Read: How to invest in stock in Singapore
Mutual funds generally fall into two structural buckets:
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Open-end funds: The most prevalent structure in Singapore. These funds dynamically issue and redeem shares based on investor demand. Buying or selling occurs at the daily Net Asset Value (NAV), calculated at the close of the trading day.
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Closed-end funds: These issue a fixed number of shares via an initial launch and subsequently trade publicly on exchanges like the Singapore Exchange (SGX). Because they are traded openly, their market price can deviate into a premium or discount relative to their actual NAV.
>> Read: Online brokerages in Singapore
5. Managing your mutual fund portfolio
The work doesn't stop once you pick your funds. Sound portfolio management dictates that you periodically rebalance your holdings—typically once a year—to keep your asset distribution aligned with your original risk intent.
If global stock indices outpace other assets, your portfolio may inadvertently become top-heavy with risk. Rebalancing ensures you systematically harvest profits from outperforming sectors and reallocate them to undervalued segments, protecting your wealth through a healthily diversified, evergreen approach.
Types of mutual funds
Understanding asset characteristics is essential to navigating how to invest in mutual funds singapore platforms successfully. Local investors can build customized portfolios using three traditional pillars, alongside specialized real estate structures.
Stock mutual funds equal to higher potential returns (or losses)
Stock mutual funds (equity funds) invest primarily in publicly traded corporate shares, making them ideal vehicles for long-term capital growth. They carry higher volatility but capture broad economic expansions.
For instance, a localized Singapore equity fund gives you concentrated exposure to domestic market giants. This dynamic was prominently highlighted when Singapore's benchmark Straits Times Index (STI) made history by breaking past the historic 5,000-point psychological milestone, propelled by record performances and resilient net interest margins among major local banking institutions. Conversely, selecting a regional Southeast Asian or global technology mutual fund will offer exposure to different growth cycles, but comes with heightened sector-specific volatility.
>> Read: The best index funds
Bond mutual funds equal to lower returns (but lower risk)
Bond mutual funds focus on fixed-income securities, creating a smoother investment curve with a regular income stream. A localized Singapore bond fund heavily weights highly creditworthy Singapore Government Securities (SGS) or investment-grade corporate bonds issued by established local entities. They serve as reliable portfolio anchors, stabilizing your broader net worth when equity markets encounter turbulent cycles.
>> Read: Bond options in Singapore
Money market mutual funds equal to lowest returns, lowest risk
Money market mutual funds invest in short-term, highly secure debt instruments like institutional bank deposits and short-dated government bills. They function as safe-haven vehicles prioritizing extreme liquidity and principal preservation.
When evaluating these funds, smart investors benchmark their yields against Singapore's risk-free alternatives. For example, with the 6-month Singapore T-Bill cut-off yields hovering around 1.45% p.a. and the 10-year Singapore Savings Bonds (SSB) locking in average multi-year returns of 2.11% p.a., money market funds are best utilized as holding pens for deployment cash rather than aggressive wealth-generation tools.
Is it possible to lose money in mutual funds?
Yes, it is entirely possible to lose money in mutual funds. Mutual funds are subjected to market fluctuations, macroeconomic systemic shocks, and localized asset underperformance. However, the risk of losing your entire principal is significantly mitigated compared to buying individual corporate stocks, as a single mutual fund spreads its underlying holdings across dozens or hundreds of independent entities. Adopting a strict long-term horizon allows compounding to smooth out interim market drops.
Summary
Establishing explicit financial goals acts as your compass, protecting you from the psychological traps of chasing temporary market trends. Carefully match your fund selections to your specific time horizon and risk tolerance to ensure your portfolio remains stable across changing economic seasons. Keep a close eye on administrative costs; managing your ongoing platform fees and expense ratios is paramount to defending your returns. Finally, commit to routine annual portfolio check-ins, guaranteeing that your asset allocation remains healthily diversified and tuned to your evolving life goals.
>> Read more: Why mutual funds are great during volatile periods
Frequently asked questions about mutual funds
Yes. They provide retail investors with immediate, institutional-grade diversification, high liquidity, and clear regulatory oversight. They remove the stress of picking individual stocks, making them an excellent choice for consistent wealth accumulation.
While they carry market risk, they are highly regulated by the Monetary Authority of Singapore (MAS). Opting for funds managed by reputable, licensed asset management houses ensures your assets are securely held by independent third-party custodians.
Significant wealth can be generated through disciplined, long-term fund investing. By consistently utilizing platforms to buy into the best mutual funds singapore offers—and leveraging tax-advantaged accounts like CPFIS or SRS—compounding interest can build substantial capital over a multi-decade horizon.
Yes, your capital value will rise and fall with the market. However, maintaining a diversified allocation and resisting the urge to panic-sell during brief market corrections helps protect your portfolio over time.
There is no singular "best" fund. The ideal fund depends on your specific financial timeline and risk profile. Beginners often find success by starting with low-cost, globally diversified equity or fixed-income funds before branching out into specialized regional sectors.
About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.