If you let your money sit in a savings account in Singapore, you could earn 1% to 3.80% in interest. However, if you invest your money in the right places, you could actually double your money. For example, according to a study by Futu Holding Limited, 18.8% of millennial investors achieved over 100% investment returns, and 1 in 5 millennial investors saw their position double. That’s all thanks to the power of compounding interest, or the Rule of 72 which is a formula that calculates how long it'll take for an investment to double, based on its rate of return.
The formula for the Rule of 72 = Years to double your investment = 72/Interest Rate; where Interest Rate = Rate of return on an investment
How long can it take to double your investments?
|Rate Of Return||Years To Double Your Investment||Examples|
|1%||72||Standard Savings Account|
Multiplying your money can be possible by creating an investment strategy and making smart financial decisions. One such way is through buying and selling stocks in the US stock market.
Should Singaporeans trade US stocks?
The US stock market accounts for 65% of the MSCI World Index, which represents stock markets worldwide. In particular, The New York Stock Exchange is the largest stock exchange in the world, with an equity market capitalisation of almost 24.5 trillion US dollars as of January 2021. Trading US stocks presents ample opportunities for Singaporean investors especially when it comes to trading stocks from the highest valued global companies including Apple, Amazon, and Microsoft. Investing in US stocks is also a recommended method to diversify your trading portfolio. If it’s your first time trading US stocks, consider investing in high-growth industries such as the energy sector, technology sector, and consumer discretionary sector.
What are the most common US stocks to buy?
According to a study by FUTU Holdings, an uncertain future resulting from the Covid-19 pandemic has led more millennials and Gen Z investors to take greater ownership of their finances by investing in stocks. More specifically, millennials allocate 64% of their investment budget into stocks while Gen Z allocates 62% towards stock trading. Here are the top 10 US stocks traded by Millennials and Gen Z in Singapore.
Top 10 US stocks traded by millennials and Gen Z
The benefits of using moomoo app
- Fast trading: Place a trading order in less than 3 seconds
- Competitive fees: For stocks and ETFs traded, users pay an affordable rate of $0.0049 per share with a minimum purchase of $0.99 (find out more here)
- News and Information: Comprehensive market information and news provide in-depth knowledge for overseas stock trading
- Market insights: Real-time Level II Quotes with millisecond-level updates
- Social investment community: Live boarding and interactive communities enhance the investment experience and empower individual users
How to open FUTU SG securities account via moomoo app in 3 easy steps
- 1. Download the moomoo app on Google Play Store or Apple App Store and claim your Special Welcome Bundle worth around S$1800, terms and conditions apply
- 2. Click ‘Getting Started’ and register using your Facebook account, Google account or email address and phone number
- 3. Click ‘Open Account’ and sign up using MyInfo or enter your details manually by following the easy onscreen instructions
How to start trading stocks with Futu SG
- 1. Login to the moomoo app and click ‘Me’ then ‘Deposit’
- 2. Choose SGD under ‘Deposit Currency’
- 3. Use your Singapore bank account to transfer money by entering your moomoo ID under the ‘Comments’ field and your Singapore bank account details (funds will be transferred in 1-3 working days)
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Disclaimer: No content on this advertisement shall be considered an offer or solicitation for the purchase or sale of securities, futures or other investment products. All information and data, if any, are for reference only and past performance should not be viewed as an indicator of future results. It is not a guarantee for future results. Investments in stocks, options, ETFs and other instruments are subject to risks, including possible loss of the amount invested. The value of investments may fluctuate and as a result, clients may lose the value of their investment. When trading in a margin account, a client may lose more than their original investment. No content on this advertisement shall be considered as an opinion or recommendation. Please consult your financial adviser as to the suitability of any investment. This advertisement has not been reviewed by the Monetary Authority of Singapore.