Grand old dame SGX a smart pick for young investors

It is time to challenge the notion that the Singapore bourse has little to offer

- Tay Hong Yi

Conversations with my peers in their late 20s to early 30s about the Singapore Exchange (SGX) often tread the same few well-worn paths.

Many have ridden the wave with high-flying local banks in recent years—and for good reason, given their strong dividend yields and price appreciation.

But the conversations tend to drift quickly to more exciting prospects—the meteoric rise of stocks elsewhere, especially those of technology giants listed in the US, and investment products like some index funds heavily weighted towards these stocks.

And did I mention cryptocurrencies, with their wild swings that some see as a ticket to overnight riches?

Whatever the case, brokers and finance experts I spoke to say one should build a more well-rounded, resilient portfolio that could and should include SGX-listed assets.

However, young investors must first challenge their preconceived notions of the SGX, which was something I confronted while writing this piece.

"INVESTING FOR OLD UNCLES?" My own relationship with the SGX began on a rather underwhelming note.

In the mid-2000s, I watched my parents invest their hard-earned money in a construction stock, religiously checking share prices that barely moved over the course of several years.

Fresh out of junior college in the 2010s, I tried to open a Central Depository (CDP) account with a hard-copy application, hoping to buy stocks in DBS Group. But when I arrived at the CDP customer service branch in Buona Vista, I found it closed for the day—and I swore off that cumbersome process.

At the heart of this personal experience are two key issues that young investors I spoke to associate with the SGX.

The first is the need to create a CDP account to hold shares, a process that went fully digital only in 2019.