When inflation is on the rise, the prices of goods and services can vary unpredictably. As such, it is essential to have a portfolio that can keep up with the ups and downs of the economy. Mutual funds are excellent investments for those looking to hedge against inflation. Singapore offers several high-quality mutual funds, which provide a range of options for investors. For those interested in investing in mutual funds, you can check out a few reputable brokers like Saxo that provide these services.
LionGlobal Disruptive Innovation Fund
The LionGlobal Disruptive Innovation Fund focuses on investing in companies engaged in disruptive technological advancements in various industries like healthcare and consumer products. It invests mainly in equities from developed markets while using derivatives to provide exposure to emerging market countries. It makes this fund an attractive option for long-term diversification and returns.
United Global Healthcare Fund
The United Global Healthcare Fund provides investors with exposure to the global healthcare sector, an excellent option for those looking to protect themselves against inflation. This fund invests in companies across different countries and regions, providing many opportunities. It pays close attention to quality management and industry trends, making it an attractive option for those seeking capital appreciation opportunities.
Aberdeen Standard Asia Pacific Equity
The Aberdeen Standard Asia Pacific Equity fund offers investors access to stocks listed on regional exchanges in the Asia-Pacific region. By investing in this fund, investors can benefit from the growth potential of emerging markets while also taking advantage of higher standards of corporate governance and diversification. This fund has a long-term track record of outperformance in the region, making it an attractive option for those seeking inflation protection.
UOBAM China Growth Fund
The UOBAM China Growth Fund is an excellent option for those looking to invest in the growth potential of Chinese companies. This fund provides investors access to companies listed on the Shanghai and Shenzhen Stock Exchanges. It also focuses on investing in high-quality companies with solid fundamentals and good prospects for capital appreciation.
ATR Asset Management Global Dividend Plus Fund
The ATR Asset Management Global Dividend Plus Fund offers exposure to stocks worldwide, focusing on dividend-paying equities. The fund seeks to provide investors with a stable source of income while also taking advantage of global market opportunities. By investing in this fund, investors can benefit from both long-term capital appreciation and regular income payments.
Advantages of investing in Singapore mutual funds
Mutual funds in Singapore offer several advantages to investors. Investors should know these advantages well before investing in mutual funds to ensure they make informed decisions.
Professional management
Mutual funds are generally professionally managed by fund managers with the experience and expertise to make informed decisions. It helps protect investors from making costly mistakes when investing their money.
Diversification
Mutual funds offer a level of diversification that is impossible when investing in individual equities or other investment instruments. By spreading investments across different sectors and industries, investors can reduce their risk while also taking advantage of potential opportunities in each sector.
Liquidity
Mutual funds allow investors to liquidate their investments quickly, meaning they can access their funds whenever needed without waiting long periods. It makes them an attractive option for those looking to invest in the short term.
Tax advantages
Mutual funds in Singapore offer several tax advantages to investors, making them an attractive option for those looking to reduce their tax burden. These can include capital gains exemption on specific investments and deductions on income from dividends and other sources.
Disadvantages of investing in mutual funds
While investors should consider the advantages of mutual funds, considering the disadvantages is also a must. Considering these will help ensure investors make informed decisions when investing their money.
Fees and commissions
One of the most significant drawbacks of mutual funds is the fees and commissions charged. It can include annual management or entry/exit fees, significantly reducing returns. It is essential to consider these costs before investing in a fund.
Limited control
Professionals manage mutual funds, meaning investors have limited control over where their money is invested, making them unattractive to those who want more control over their investments.
Market risk
The value of mutual funds is subject to market risk, so there is no guarantee that investors will make a return on their investment. Therefore, investors must be willing to take on some risk when investing in mutual funds.
