If you are a season investor you may know the importance of Singapore as a trading hub. The city state is best known for its financial sector and growth opportunities. Due to the tremendously favorable and business friendly environment. It has drawn around 3000 companies from China and India alone. In addition, multinational corporations reaching a staggering number of 7000. Skill workforce, minimum corruption rate and low taxes make it a heavenly destination for investors and start ups.
Singapore and ETF
The most efficient and easiest road for investment in Singapore is ETF or Exchange Traded Funds. With an individual American traded bond, it provides you the most diversified revelation of the country. Being one of the most famous names in the ETF market the Blackrock’s iShares Index Fund is the best to invest in. It holds more than 500 million dollars as a value for net assets.
The government has focus on the development of financial and industrial sectors as Singapore is a prominent trade destination. This boon can easily turn into a bane if at any time the financial system comes under a tense environment. But, unlike other countries in the world, Singapore has been steady into its trade policies. If your interest is in close end mutual funds, then you can buy SGF Inc. This organisation has been doing well since last year’s April having a market capitalization of more than 70 million dollars.
If you are a risk taker, then you can invest in the ADR’s to gain more dividends. These are trading baskets for foreign currencies by the U.S.A.
Pros
Statistics
Being an investor you should heavily depend on data speculation for dealings. Singapore stands out on this platform. Singapore has one of the highest per capita incomes in the world and most number of millionaires. The country ranks among the lowest in unemployment rates within the group of develop countries. Such demographics are very lucrative for any investor around the globe.
An open economy
Everybody is aware of the favorable conditions in Singapore to conduct and operate business. It is among the smoothest countries to develop an idea into a highly profitable business. Though China has seen a drop in economic growth yet Singapore has been able to maintain its stability. Being a capitalistic nation it encourages new investors and provides them enough returns to hold them back.
Cons
High dependence on trade
The country is overly dependent on trade with foreign countries to sustain its economy. Due to this dependency, the nation has gone through financial turmoil in 2001 and 2008. Ever since then, the country has been showing tremendous growth. But with international market getting more unstable it is likely to affect Singapore’s economy at some point of time.
Chinese connection
China’s slow growth rate is a demotivating factor for Singapore. As it is interconnected with its economy. Till now it has been able to hold its ground but it is bound to see a replica of Chinese economic crisis in the long run.
Before making any decision, you should weigh both sides of the coin. The investment also depends on your current position as there is a high rate of unrest in world market. Start with small investments to know the economy and its working patterns.
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