In Singapore, a nation renowned for its robust financial infrastructure and a populace that increasingly values financial independence, investing is no longer the preserve of the wealthy. With the democratisation of financial platforms and increasing access to educational resources, even modest monthly contributions — as little as $100 — can mark the beginning of a solid investment journey.
This guide offers a detailed yet approachable roadmap for individuals looking to start investing with $100 a month in Singapore. Whether you are a fresh graduate, a young professional, or someone seeking to regain financial control, this article will help you take those first informed steps.
Why $100 a Month Can Make a Difference
At first glance, $100 a month might not seem significant in the broader context of investment. However, what it represents is consistency, discipline, and long-term thinking. This habit of regular investment is known as dollar-cost averaging (DCA) — an investment strategy where fixed sums are invested regularly regardless of market conditions.
Through compounding returns, even a small monthly contribution can grow into a meaningful portfolio over time. For instance, investing $100 monthly over 20 years at an average return of 6% per annum could result in over $46,000. That’s the power of patience and persistence.
Step 1: Understand Your Investment Goals and Risk Appetite
Before you embark on your investment journey, it’s essential to clarify your goals. Are you investing for retirement, saving for a home, or building a rainy-day fund? Your investment horizon — whether short-, mid-, or long-term — will significantly influence your strategy.
Equally crucial is assessing your risk tolerance. Would you lose sleep over short-term market dips? Or are you comfortable with a more volatile portfolio if it means higher potential returns? Understanding this helps you choose the appropriate investment instruments.
Tools such as the MyMoneySense Risk Profiler by the Singapore government or robo-advisory platforms’ built-in assessments can assist in this process.
Step 2: Build Your Emergency Fund First
While the impulse to invest straight away may be strong, a financial safety net is non-negotiable. Experts typically recommend setting aside at least three to six months’ worth of living expenses in a high-yield savings account before investing. This ensures that unexpected events — such as retrenchment, medical emergencies, or urgent repairs — do not force you to liquidate your investments prematurely, especially during market downturns.
Banks such as Standard Chartered’s JumpStart Account or UOB One Account offer relatively higher interest rates for savings, serving as suitable emergency fund vehicles.
Step 3: Choose the Right Platform
Singapore’s fintech scene has flourished, with an array of platforms catering to small-scale investors. Here are a few popular and beginner-friendly options:
1. Robo-Advisors
Robo-advisors offer automated, algorithm-driven financial planning with minimal human supervision. With low fees and diversified portfolios, they are ideal for beginners. Leading robo-advisors in Singapore include:
- Endowus – Invests directly in SGD and CPF, offers access to institutional funds.
- StashAway – Customisable portfolios, accessible with as little as $1.
- Syfe – Offers thematic portfolios and REIT-focused options.
Most allow you to start investing with as little as $100 a month via automated GIRO deductions, making it seamless and disciplined.
2. Regular Savings Plans (RSPs)
Offered by major banks and brokers, RSPs allow you to invest a fixed sum monthly into Exchange Traded Funds (ETFs) or unit trusts.
Examples include:
- POSB Invest-Saver – Invest in STI ETF or Nikko AM funds starting from $100/month.
- FSMOne RSP – Offers access to global ETFs and funds at low fees.
- OCBC Blue Chip Investment Plan – Allows investment into blue-chip Singapore stocks or ETFs.
3. Central Depository (CDP) Linked Brokers
If you prefer direct stock investments, brokers like Tiger Brokers, moomoo, or Saxo Markets provide access to Singapore and global equities with low commissions. While not ideal for $100 monthly due to transaction fees, accumulating funds over several months before investing can be an alternative strategy.
Step 4: Decide What to Invest In
The most suitable instruments for first-time investors in Singapore include:
1. Exchange Traded Funds (ETFs)
ETFs are baskets of securities that track an index. They offer diversification, lower risk compared to individual stocks, and lower costs. Popular ETFs among Singaporeans include:
- SPDR STI ETF (SGX: ES3) – Tracks the Straits Times Index.
- Nikko AM SGD Investment Grade Corporate Bond ETF – Suitable for risk-averse investors.
- Vanguard S&P 500 ETF (NYSE: VOO) – Gives exposure to US markets.
2. REITs (Real Estate Investment Trusts)
REITs allow you to invest in real estate assets without owning property directly. Singapore-listed REITs (S-REITs) such as CapitaLand Integrated Commercial Trust or Mapletree Industrial Trust are known for stable dividends and lower capital requirements.
3. Unit Trusts
While typically more expensive due to management fees, certain platforms (e.g., FSMOne) offer trailer fee rebates that reduce costs, making unit trusts more accessible to small investors.
4. Singapore Savings Bonds (SSBs)
Ideal for extremely risk-averse investors or those still building an emergency fund. SSBs are backed by the Singapore Government, provide interest returns that increase over time, and allow redemption without penalty.
Step 5: Automate and Monitor Regularly
Once you’ve selected your platform and instruments, the most efficient way to stay consistent is to automate your contributions. Many banks and apps allow GIRO transfers to your investment accounts. This “set it and forget it” approach builds discipline and takes emotion out of investing.
However, automation does not mean neglect. Reviewing your portfolio once or twice a year is sufficient for most beginner investors. Reassess your risk profile, goals, and rebalance if needed — particularly if market conditions change dramatically or your financial situation evolves.
Step 6: Learn and Grow Alongside Your Portfolio
The best investors are lifelong learners. With just $100 a month, your portfolio won’t change your life overnight — but your habits will. While investing, spend time reading financial blogs, watching explainer videos, or attending free webinars by platforms like MoneyOwl, Seedly, or SGX Academy.
Some excellent resources for beginner investors in Singapore include:
- The Woke Salaryman – Engaging illustrations and stories on money habits.
- Seedly Personal Finance Community – Crowdsourced advice from other Singaporeans.
- Investopedia – A global resource for definitions and investment concepts.
Mistakes to Avoid When Starting Small
Even with modest sums, new investors should remain wary of common pitfalls:
- Over-diversifying too soon: With a limited budget, it’s more effective to focus on one or two diversified instruments rather than spreading yourself thin.
- Chasing hot tips: Avoid stock-picking based on hearsay or social media hype without doing due diligence.
- Ignoring fees: Even small commissions or platform charges can eat into returns. Always check for hidden costs.
- Impatience: Investing is not a get-rich-quick scheme. Stay the course, especially during market downturns.
Conclusion: Start Where You Are
Investing with just $100 a month in Singapore is not only possible — it’s smart. It encourages financial literacy, builds the habit of delayed gratification, and most importantly, puts time on your side. The financial landscape in Singapore offers a range of accessible tools and platforms tailored to help even the most novice investor begin confidently.
Start small. Stay consistent. Keep learning. One hundred dollars a month may not feel like much now, but over time, it can be the cornerstone of your financial freedom.
