Find Out What’s The Best Investing Style For You!

We all know that it is not enough to merely rely on savings to help us build wealth.

In fact, most savings accounts pay interests that are lower than our annual inflation rate, which is about 4%.

By leaving your money in a savings account, it’s actually eroding your money’s value!

One of the best ways to help us build wealth is to invest. Many may feel intimidated by the idea of investing, but fear not, it is not meant as a one size fits all solution to all your money problems.

In fact, it is important that you feel comfortable and confident in what you choose to invest in.

If you are unsure of where to start, take a look at the various personality types below to see which investment suits you best!


1) Strategy For The “Kia-si” Investor

There is no shame in admitting you are fearful of investing.

After all, we’ve heard of horror stories of how innocent people have been conned into buying products they don’t quite understand and end up losing lots of money (such as during the Lehman crisis).

For those who cannot stomach the idea of losing their hard-earned money, it’s best to look for a product that is principal-guaranteed.


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This can be fixed income securities, government bonds such as the Singapore Savings bond, or structured deposits provided by banks that guarantee the principal amount.

However, do note that with such safety, you can be sure that the investment returns are quite minimal and may not beat inflation rate in the long term.


2) Strategy For The “Kia-su” Investor

The kiasu investor can take a little more risk compared to the kia-si investor. He/she understands that a bit of risk is necessary to at least make returns that can keep pace with inflation.


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Those who fall into this category can look at buying into an index fund on a regular basis so as to take advantage of dollar-cost averaging over the long term.

If you lack the discipline to buy into the index regularly, you can always make use of one of these plans – POSB Invest-Saver or the Maybank Monthly Investment Plan.

3) Strategy For The Moderately Aggressive Investor

If you have already tried trading stocks, understand what an article on Bloomberg talks about and reads financial news regularly, you most likely belong to this category of investors.

You can be classified as moderately aggressive in terms of risk appetite and are able to still eat and sleep properly even if your stock portfolio is down a thousand dollars.

Those in this category have a wide range of investment choices, including stocks and REITS.

If you fall under those that are too lazy to look into the financial statements of the company, do sector analysis or read analysts reports, there are also ways for lazy investors to make profits.

This includes paying an administrative fee for others to do the work for you via unit trusts, investment-linked policies or mutual funds.

4) Strategy For The Brainiac Dare-devil Investor

If you have a real passion for investing and are unfazed at having to spend hours of your weekend reading investment books, you could fall into this category of investors.

You are most likely able to stomach a possible loss of all your investment principal to take advantage of maximum potential returns.

One of the key differences with those in this category is that they might dabble in leverage trading- which is definitely not for the faint-hearted.

Leverage is a facility that enables you to gain a large exposure to a financial instrument while only putting up a relatively small percentage of your capital.

What’s risky about this is that your profit and loss is however, calculated based on a full position and could even be much more than your outlay. Possible investment assets for you include futures, options, CFDs and Forex.


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A word of caution though – these instruments border more on the edge of trading compared to investing, so be sure to allocate your portfolio properly to include a mix of products to meet your investment objectives!

Share this useful article with friends that are not sure how to invest in a way that suits their personality!

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Lynette Tan

Lynette has more than six years of experience in financial analysis and writing, having stepped foot in the financial world as a commodities analyst. With a passion for personal investing and financial literacy, she hopes to help others gain investment knowledge by making investment concepts plain and simple for the man on the street.

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