Increasing keenness and caution among S’porean investors: survey

The improving market condition has prompted Singaporeans to return to investing, but they are also more cautious than before.

These are among the findings from the latest Citi Financial Quotient (Fin-Q) Survey 2009, which garnered 400 Singapore respondents for the annual survey.

According to the survey, 13 per cent of the respondents who had stopped investing during the financial crisis have now resumed investing, and 31 per cent are now open to it once the right opportunity arises.

A further 36 per cent of the respondents said they have stayed invested throughout the crisis, while 21 per cent of the respondents continue to prefer holding their savings in cash or near-cash equivalents.

For investors or those open to investing, the survey findings also suggested a return in risk appetite.

Topping the list of preferred investments for this group were equity instruments, with 54 per cent opting for stocks as part of their portfolios and 28 per cent preferring unit trusts.

20 per cent of the respondents also indicated that they will look into buying property for future sale or rental yield as an investment.

At the same time, the willingness to invest is balanced with an increased level of cautiousness.

25 per cent of the respondents said they were a lot more cautious, while 42 per cent indicated that they were a little more cautious in their investment decisions. This is in line with the finding that just 39 per cent believe the worst of the global financial crisis is behind us.

Mr Shrikant Bhat, head of wealth management, Citibank Singapore, said that investors are increasingly asking questions and making informed investment decisions.

They are also likely to build a holistic portfolio over a longer-term horizon, added Mr Bhat.

The survey in Singapore highlighted that the top three financial concerns of residents are rebuilding their savings, meeting monthly expenses and increasing retirement savings.

Source : Channel NewsAsia – 4 Jan 2010

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