What You Need to Know Before Investing in the Straits Time Index (STI)

Investing your hard-earned money to grow and beat inflation over the long-term is undeniably one of the best decisions you can ever make when looking to change your life for the better. And this does not come as a surprise to many as it serves as the perfect opportunity to build wealth while safeguarding your retirement. However, the journey to investing is full of ups and downs that you must overcome.

No wonder many would rather try their hand at the Strait Time Index (STI) ETF as their first investment. If you’re looking forward to taking the same path, then you’ve definitely come to the right place. Here are some of the things you need to know before investing in the STI index.

What is the Straits Times Index?

Before going any further, it is in your best interest that you understand what the STI index entails. After all, there is no way you can invest in something you know nothing about. To cut the long story short, the FTSE STI index is a market capitalization weighted index that keeps track of how the top 30 company listed on the Singapore Stock Exchange (SGX) perform.

However, you need to keep in mind that the 30 companies listed on the STI are not always the same. And this is easy to see why since the FTSE carries out quarterly reviews of the STI constituents in March, June, September and December. During the review they may insert or delete companies based on the set rules.

How to Start Investing in the STI ETF

If you’ve done some research, then you may already know that there are three main ways for Singaporeans to invest in STI ETF. You can choose to invest in a STI ETF through a brokerage or using regular share savings. Alternatively, you can invest using CPF investment scheme. It is advisable that you figure out the pros and cons of all these methods before settling on one.

The Bottom Line

Before investing in the STI index, ensure you clear all the doubts you may have in your mind. After all, this is the only way you can avoid making costly mistakes. If in doubt, do not hesitate to seek the professionals in the field. It is then that you stand a better chance of reaping maximum benefits.

Jasmine Albert
I am a content marketing addict. I help small businesses combat the content gremlins and succeed. Small business owners and marketers struggle to stay motivated. I help them with my business and blog to build measurable online content strategies that are time efficient and deliver results. Email: jasmine@topdailyplanner.com

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