Singapore stocks most popular amongst young investors at 56%

More than half of respondents aged 18 to 40 actively invest, with 65% using DCA.

Singapore stocks are the most popular investment amongst young investors, with 56% of active investors investing in them, according to a report from Trust Bank.

Global exchange-traded funds followed at 45%, US or overseas stocks at 37%, unit trusts or managed funds at 27%, cryptocurrency at 25%, and bonds or T-bills at 23%.

The report said 51% of surveyed Singapore residents aged 18 to 40 are actively investing, whilst 16% have lapsed and 33% have never invested.

Trust Bank said the “investing habit starts early”, with 74% of active investors aged 18 to 24 making their first investment by age 20, whilst 88% of those aged 25 to 40 started by age 30.

Around 65% of active investors made an investment transaction within the last month. Some 88% check their investment portfolios at least once a month, including 72% who check weekly, whilst 5% have automated their transactions, the report said.

Around 65% also use dollar-cost averaging (DCA), investing a fixed amount on a regular basis regardless of market conditions. Some 24% use DCA as their main investing approach, whilst 41% use it for some investments.

“The one significant difference between age groups is familiarity, where 16% of 18-24s weren’t sure what DCA meant versus 7% of 25-40s,” the report said.

Young investors are also starting with smaller sums. Some 40% of active investors aged 18 to 24 have less than $5,000 in liquid savings, yet 81% invest at least 5% of their allowance or income.

Amongst active investors aged 25 to 40, 17% have less than $5,000 in liquid savings, whilst 86% invest at least 5% of their income or allowance.