Fixed income, equities funds remain top investment choice among Singapore investors: survey

Many also consider ETFs and crypto for future investments.

Singaporean investors primarily invest in fixed-income and equities funds and are likely to continue investing in the same funds in the coming year, according to a new report by FleishmanHillard. 

In its The Future of Asset Management in Asia report this year, FleishmanHillard found the about half of Singaporean investors have traded or invested in fixed-income funds (56%) and equities funds (48%), while one in three invests in exchange-traded funds (ETFs). 

Trailing behind are digital assets or cryptocurrency (34%), private equity funds (32%), balanced funds (30%) and lastly, alternatives (22%).

At least two in five of the respondents plan to continue investing in the same fixed-income and equities funds for the next 12 months, according to the study.

41% of investors in the city-state consider the sluggish global economic growth to pose the biggest financial threat to their portfolios, prompting more investors to move their investments into lower-risk options.

“Although Singaporean investors also exhibit risk-averse behavior, with 27% shifting towards lower-risk options, 24% and 20% of respondents are showing an increased risk appetite for high-yield instruments and a move towards higher-risk options. These varying perspectives among investors in the region may be influenced by the different economic outlooks in their respective markets,” FleishmanHillard said.

Investors were also highly interested in ETFs (29%) and crypto (28%) for future investments.

By sector, they are most include to invest in banking and finance (44%), artificial intelligence (43%) and technology (38%).

69% of Singapore investors were also interested in pouring their capital into the Asia-Pacific region, mostly within the city-state, followed by mainland China and Japan.

Financial media and special media were their top two sources of information on funds and investment products, while the majority of investments use independent financial advisers and online platforms for fund patronage. 

Singapore investors are also joining the AI gold rush. Nearly half of those surveyed in the Lion City are already using AI tools or ChatGPT to aid in making investment decisions.

“Although many decision makers use big data and AI algorithms to analyze market trends and identify potential risks and opportunities, it is still yet to be seen if ChatGPT or other AI tools will replace humans in making investment decisions,” FleishmanHillard.

The study polled 1,250 investment professionals in Asia.