Recipes for Investing

This illustration demonstrates how the future value of your savings would be eroded over time, assuming an annual inflation rate of 2%.

This illustration shows how much in compound interest you could potentially lose out on by holding back your investment plans, assuming a fixed rate of return of 3.25%^ compounded annually.

^3.25% is the updated investment returns used in the Benefit Illustrations for Singapore-dollar denominated insurance Participating ("Par") policies adopted by Life Insurance Association’s (LIA) (w.e.f. 1 July 2013).

You have a short investment time horizon.

Suggested solutions:
One Account and other savings accounts | Singapore Dollar Fixed Deposit | Foreign Currency Fixed Deposit

You have a medium investment time horizon.

Suggested solutions:
Singapore Government Securities | Bonds | Structured Deposits | Insurance Savings Plans (Single Premium) | Unit Trusts

You have a long investment time horizon.

Suggested solutions:
Bonds | Unit Trusts | Insurance Savings Plans (Regular Premium)

The above information should not be regarded as an offer, recommendation, solicitation or advice to buy or sell any investment product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of investment products is qualified in its entirety by the terms and conditions of the investment product and if applicable, the prospectus or constituting document of the investment product. Nothing herein constitutes accounting, legal, regulatory, tax, financial or other advice. If in doubt, you should consult your own professional advisers about issues discussed herein. The information contained above, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information and reflects prevailing conditions as of the date of the articles, all of which are subject to change at any time without notice. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information provided above, United Overseas Bank Limited ("UOB") and its employees make no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for its completeness or accuracy. The views expressed herein are solely those of the authors' and are subject to change at any time without notice. UOB and its employees accepts no liability for any error, inaccuracy, omission or any consequence or any loss/damage howsoever suffered by any person, arising from any reliance by any person on the views expressed or information contained in this webpage. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Dollar cost averaging is an investment strategy where you invest a regular amount at regular intervals.

In this illustration, Investor A makes a lump sum investment of $5,000 in January. He purchases 250 shares at the price of $20 a share.

Investor B, on the other hand, practices dollar cost averaging by investing $417 each month for the entire year. He purchases fewer shares when the price is higher and more shares when the price has dipped. By the end of the year, he has invested $5,000 and has bought 300 shares, at an average price of $17 per share.

Take a disciplined approach to investing with the UOB Regular Investment Savings Plan, which allows you to invest small, fixed sums of money at regular intervals.

Affordable
From as little as S$100 monthly^*, you be on your way to start building up your investments.

Flexible
Flexibility to increase your monthly investment amount

Suggested solutions:
UOB Capital Builder
A new investment solution that can help you grow your capital sustainably

UOB Income Builder
Receive potential regular income amid market ups and downs

Find out more about the unit trusts that are available under the UOB Regular Investment Savings Plan.

^*Minimum initial lump sum investment of S$1,000 is required with the UOB Regular Investment Savings Plan, and it is available only for selected SGD-denominated Unit Trusts.

The above information should not be regarded as an offer, recommendation, solicitation or advice to buy or sell any investment product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of investment products is qualified in its entirety by the terms and conditions of the investment product and if applicable, the prospectus or constituting document of the investment product. Nothing herein constitutes accounting, legal, regulatory, tax, financial or other advice. If in doubt, you should consult your own professional advisers about issues discussed herein. The information contained above, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information and reflects prevailing conditions as of the date of the articles, all of which are subject to change at any time without notice. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information provided above, United Overseas Bank Limited ("UOB") and its employees make no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for its completeness or accuracy. The views expressed herein are solely those of the authors' and are subject to change at any time without notice. UOB and its employees accepts no liability for any error, inaccuracy, omission or any consequence or any loss/damage howsoever suffered by any person, arising from any reliance by any person on the views expressed or information contained in this webpage. This advertisement has not been reviewed by the Monetary Authority of Singapore.

Compound interest can be understood as the interest that you earn on your interest, which is in addition to the interest that you earn on your principal.

This illustration shows how much in compound interest you could potentially lose out on by holding back your investment plans, assuming a fixed rate of return of 3.25%^ compounded annually.

^3.25% is the updated investment returns used in the Benefit Illustrations for Singapore-dollar denominated insurance Participating ("Par") policies adopted by Life Insurance Association’s (LIA) (w.e.f. 1 July 2013).

You can make compound interest work in your favour on a number of different investment solutions. The key is to start early and be disciplined in allowing your returns to compound.

Suggested solutions:

One Account and other deposit accounts

Do not withdraw your interest income but instead, allow it to compound.

Unit Trust

Choose an accumulation share class where any investment gains are automatically re-invested into the fund.

Equities

Reinvest the dividends that you receive.

The above information should not be regarded as an offer, recommendation, solicitation or advice to buy or sell any investment product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of investment products is qualified in its entirety by the terms and conditions of the investment product and if applicable, the prospectus or constituting document of the investment product. Nothing herein constitutes accounting, legal, regulatory, tax, financial or other advice. If in doubt, you should consult your own professional advisers about issues discussed herein. The information contained above, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information and reflects prevailing conditions as of the date of the articles, all of which are subject to change at any time without notice. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information provided above, United Overseas Bank Limited ("UOB") and its employees make no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for its completeness or accuracy. The views expressed herein are solely those of the authors' and are subject to change at any time without notice. UOB and its employees accepts no liability for any error, inaccuracy, omission or any consequence or any loss/damage howsoever suffered by any person, arising from any reliance by any person on the views expressed or information contained in this webpage. This advertisement has not been reviewed by the Monetary Authority of Singapore.

An example of a diversification strategy would be to build your portfolio using stocks and bonds from across different sectors or geographies that are not co-related. If a particular investment experiences a downturn, your entire portfolio would not be adversely affected.

For instance, during the Global Financial Crisis in 2008, when stock markets globally underwent a severe correction, U.S. government bonds managed to deliver positive returns. However, the following year, U.S. government bonds underperformed compared to many other major asset classes, especially equities.

Concentrated

Individual equities | Single country equity funds

Moderate

Regional balanced funds

Broadly diversified

Global multi-asset funds

Suggested solutions:
UOB Capital Builder
A new investment solution that can help you grow your capital sustainably, managing risk and volatility through diversification across asset classes and markets globally.

UOB Income Builder
An investment solution that seeks income-generating opportunities by spreading your money globally across different geographies and investment types.

Find out more about our suite of unit trusts.

The above information should not be regarded as an offer, recommendation, solicitation or advice to buy or sell any investment product and shall not be transmitted, disclosed, copied or relied upon by any person for whatever purpose. Any description of investment products is qualified in its entirety by the terms and conditions of the investment product and if applicable, the prospectus or constituting document of the investment product. Nothing herein constitutes accounting, legal, regulatory, tax, financial or other advice. If in doubt, you should consult your own professional advisers about issues discussed herein. The information contained above, including any data, projections and underlying assumptions, are based on certain assumptions, management forecasts and analysis of known information and reflects prevailing conditions as of the date of the articles, all of which are subject to change at any time without notice. Although every reasonable care has been taken to ensure the accuracy and objectivity of the information provided above, United Overseas Bank Limited ("UOB") and its employees make no representation or warranty of any kind, express, implied or statutory, and shall not be responsible or liable for its completeness or accuracy. The views expressed herein are solely those of the authors' and are subject to change at any time without notice. UOB and its employees accepts no liability for any error, inaccuracy, omission or any consequence or any loss/damage howsoever suffered by any person, arising from any reliance by any person on the views expressed or information contained in this webpage. This advertisement has not been reviewed by the Monetary Authority of Singapore.