Dear readers, the October 2020 Singapore Savings Bonds is now out for subscription. I would like to reveal one exciting finding from this October 2020 Savings Bonds.
First, let me share what is going to be the returns of the October 2020 Singapore Savings Bonds. Below are the average yearly returns of the bonds based on the holding period.
Year 1: 0.26%
Year 2: 0.26%
Year 3: 0.31%
Year 4: 0.41%
Year 5: 0.50%
Year 6: 0.58%
Year 7: 0.66%
Year 8: 0.74%
Year 9: 0.82%
Year 10: 0.90%
Assuming you invest $200,000 into the Singapore Savings Bonds and hold up to the 10-year maturity period, you would earn 9% in total or $18,000 over the 10-year period. This is what makes an exciting finding!
It is an exciting finding because you could have know by now that the above return is really modest as compared to the average annual return of close to 2% for the Singapore Savings Bonds sometime back in 2018 or 2019. And given the above finding, you should know you could do better than locking your $200,000 for 10 years earning such a modest return.
How much better could you achieve?
Well, assuming the Straits Times Index head south to 1,700 level when stocks markets correct widely (read here on why I choose this level ) and rebound to the current 2,500 level over time, investors will be looking at about 50% in capital appreciation (not including dividends).
That means to say your $200,000 could give you $100,000 in profit as compared to the $18,000 returns from the Singapore Savings Bonds. And the Straits Times Index (STI) ETF (ES3.SI) could give you the direct exposure from the Straits Times Index.
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
BINGE READ ALL POSTS!
Visit Home Page for more reads or Connect here!