Investments form an integral part of any wealth creation journey. Those who wish to set their finances on a journey of growth and wish to experience growth that exceeds inflation may have to take on some additional risk. However, what DBS Bank Investments will never tell customers, is that investing guarantees them a return higher than bank rates or inflation. This is because past performance is merely an indication of where an investment could go, not necessarily where it will go.
In this review, we take a look the DBS Bank Investments and compare them to some of the best in the world, such as the investments offered by Deutsche Bank.
About DBS Bank
During the sixties, Singapore was at odds with Malaysia and conflict was of such as nature that Malaysia no longer wanted this rebellious region to be part of it. Singapore was now left on its own and needed to set up government, infrastructure, and all the other things required of a fledgling nation.
DBS Bank was formed at this time to provide Singapore with the financial backing required to allow it to reach its goals. The nation embarked on a two-decade plan to modernize Singapore. Not only did the government sacrifice funds for this initiative, but also the inhabitants of Singapore. The country is now regarded as one of the most prosperous nations in the world.
Practical Tips for Beginner Investors
Investing is about more than just playing roulette with a few stocks. It also requires a keen eye to watch market movements and have an understanding of risk. All these factors and more will determine whether a customer experiences a satisfactory investment journey. These are some of the highlights of an investment strategy for a firm wealth creation journey.
Keep Emergency Savings Separate
When it comes to investing, it should be out of a position of surplus. This means that customers should keep their emergency savings separate unless they invest in a guaranteed investment. This is because market conditions and other factors could result in customers losing all their savings, which is not the ideal position to be in.
Investing is a Long Term Game
Investors should expect to invest their funds for at least five years. This is because the first few years are to recoup the costs of the investment, such as fees. Only once the costs are recouped can the investor expect to see growth on their funds. Furthermore, the longer the funds remain in the investment in most cases, the easier it is to ride out market fluctuations.
If It Doesn’t Specifically Offer A Guarantee, Then the Funds Are Not Guaranteed
Some brokers may want to tell potential investors that the fund has experienced consistent growth and there is no reason to assume it won’t do so in future. However, customers who don’t have an appetite for risk should insist on funds that carry guarantees.
Higher Rewards Generally Equate to Higher Risks
Investors should do some research before putting all their funds in a single fund that is predicted to perform well. These high performances are often linked to high risk and the slightest shift in the markets could result in monumental losses.
DBS Bank Investments Product Offerings
This is an investment type that allows customers to pool their money with other investors and invest in a wider range of assets that may have previously been unavailable to them. Unit Trusts mainly consist of Equity Funds or Fixed Income Funds. Those who wish to have a combination of the two will opt for balanced funds.
- This investment type provides customers with access to professional management by fund managers.
- There is also a fair amount of risk management as customers invest in a diversified collection of assets.
- Furthermore, customers have access to their funds daily.
- The entry requirements are fairly low as many products allow customers to start from as little as $100 per month. They can also invest a minimum lump sum of $1,000.
- Finally, customers work together with a Funds Selection Team to assist them with their research and assessments.
DBS Vickers Online Account
Apart from having a number of options in terms of trading in equities, customers also have the option to open a trading account online. Customers can also link their existing CDP account at the same time.
- This is a paperless account that allows customers to take advantage of shorter processing times.
- Customers are also able to download the app for convenient trading.
- The account has no maintenance costs, however, requires customers to be over the age of 21.
- Finally, customers can apply anytime at their convenience.
Online Cash Account
Customers have access to a convenient trade settlement option. This is done by linking their trading account to their DBS/POSB bank account via GIRO or EPS.
- This account provides customers with a single access account for transactions in different markets.
- Also, customers enjoy convenient FX conversion service to facilitate trade settlement in foreign currencies.
- Finally, customers have full access to online trading platform videos and a user guide.
Cash Upfront Account
This account provides customers with the means to trade via iBanking. Furthermore, they will only pay a commission rate* of 0.12% on all Singapore cash upfront trades.
* This is subject to conditions and could change in future.
- Customers have access to hassle-free settlement debiting from or crediting to their DBS Vickers cash upfront account.
- Also, there is flexibility in managing their trading limit with real-time cash top up.
- Finally, customers enjoy the convenience of online fund withdrawal requests.
Young Investor Account
This account is designed to expose the youth to trading options, without too much risk. Furthermore, the account is suitable for those between the ages of 18 and 20.
- This is the first step for youngsters to take should they wish to experience the stock market.
- Also, this is suitable for those who possess a basic knowledge of investments.
- Customers can open an individual account or a parent joint-account.
- Finally, the account is not opened online.
Singapore customers enjoy the option to trade on their smartphone through DBSV mTrading.
- Customers use a single account to trade in Singapore, Hong Kong, United States, Canada, United Kingdom, Australia, and Japan stock markets.
- Furthermore, they can view real-time prices from SGX, HKEx, NYSE, NASDAQ, AMEX, and TSX.
- The app provides great security options.
- Also, the app allows customers to monitor market movements with global stock indices, etc.
- Finally, the app provides access to trading options such as orders, settlement details, holdings, and more.
Singapore Savings Bonds
These are regarded as a safe and flexible option for customers to maintain the value of their investment. Furthermore, this option allows customers to earn step-up interest on their savings until they need money.
- This account provides the opportunity to diversify risks and benefit from an effective portfolio.
- Customers can apply for this product online.
- The principal investment is guaranteed, which makes it an ideal product for those who have a no risk tolerance.
- This product allows customers to invest for up to 10 years and earn interest that increases over time. Also, this means the longer customers hold their bond the higher their return.
- Customers don’t have to commit to a tenure for this investment. It remains completely flexible. There is also no penalty for leaving the fund early.
- Finally, this is a safe way to build up a nest egg.
FX and Cash Management
Currency Linked Investments
This type of account is a dual currency investment that involves a currency option. Furthermore, the investment is tailored to the customer’s choice of currency pairs.
- Customers enjoy the benefit of a strike rate and tenor.
- The investments can be for anywhere between 1 week and 6 months.
- There is the possibility to earn higher returns.
- Finally, this account is applied for in the branch.
This service includes the option to open a Foreign Currency Fixed Deposit account. Furthermore, there are 10 currencies to choose from. Also, the account allows customers to pick a tenor that suits them from a month to a year. Finally, the services also include remittances, demand drafts, and more.
This investment type includes equities, interest rates, market indices, fixed-income instruments, and even a combination of these. Also, customers tend to invest medium to long-term.
- During the specified offer period, customers also have access to the tranche concept.
- Also, the bank will return to the customers the full principal amount if the structured deposit is held to maturity or early redemption. However, if the bank becomes insolvent, customers will lose their full principal amount.
- Finally, payout frequencies under this type of investment vary.
SRS and CPFIS
Supplementary Retirement Scheme
This is a voluntary savings program that allows customers to save on their taxes. Furthermore, this is specifically designed to allow consumers to save towards their retirement.
- Customers enjoy tax-free investment gains.
- They also have the flexibility to make withdrawals.
- Furthermore, the account allows tax-free withdrawals on 50% of the withdrawn amount up to the age of 62.
- Finally, customers can choose from a wide range of financial products including bonds, fixed deposits, foreign currency fixed deposits, shares, and more.
CPF Investment Scheme – Ordinary Account
This account provides customers with the opportunity for the potential to earn greater returns and a more comfortable retirement. Furthermore, customers will enjoy a wide range of investment options.
Investments aren't for everyone, and the DBS Bank also happens to have a great savings portfolio which we recently did a review of.
Critical Reviews Rating DBS Bank Investments – 10 of 10
There are no shortcuts with these investments and customers enjoy the knowledge that their selection will add value to their wealth portfolio. In each investment type, the risks are clearly communicated to the customer. Even in the case where there is no risk, customers still enjoy the benefit of optimal returns.
Finally, the investment options are ample enough to rival even the best options globally. Customers who wish to dip their toes in investing or even those who are salted wealth creators will find something of value with this bank. A well-deserved perfect rating.
Another bank that carries a perfect score where investments are concerned, is Wells Fargo.