Dear readers, recently I was reviewing my investment portfolio when I took a look at the interests arising from my Singapore Savings Bonds in recent years. As a quick background, I have subscribed to the earliest tranches of the Singapore Savings Bonds where interest rates were generally much higher than current.
You may ask how much higher were the interest rates? Well, just to share one Aug 2018 Singapore Savings Bonds where the interest rate was 3.41% in Year 10 or an average interest rate of 2.66% over the 10 years.
I have parked some of my spare monies in Singapore Savings Bonds and I know the general perception of investors is that these savings bonds don’t give much returns. However, I still get a decent average returns of over $4,000 per year from these savings bonds.
Never mind, some investors may scoff at these returns as they would say the stock markets could give higher returns. But I am actually earning these interest risk-free, alike the stock markets.
The above said, I have a diversified portfolio with some monies in stocks, some monies in bonds. I don’t think it is wise to have all investment in equities.
Never mind whether there is a saying of one who diversify his investment portfolio does not know what he is investing in or lack focus. The most important thing is that you have your own investing strategy and that can deliver for you and is comfortable to you.