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Investor Profile: Quick Start to Selecting a Bond for Investment

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  • Published on 22 May 2015

Investor Profile: Quick Start to Selecting a Bond for Investment | Open a FREE FSMOne account and manage all your investments conveniently in ONE place

With the number of bond issues available on Bonds@FSM currently standing at over 300 and expected to increase rapidly, it may seem an insurmountable task to identify a suitable bond to invest in. To simplify this process, Bonds@FSM offers an intuitive and easy-to-use Bond Selector to help investors.

Use the various metrics to refine your search. If you have a target yield or years to maturity in mind, simply use the slider bars to narrow the bond universe further.

 

What Type of Bond Investor Are You?

If you do not have any pre-determined targets in mind, the Investor Profile will be a good place to start your bond search. Simply click on the appropriate Investor Profile category to select all bonds that are more likely to meet your investment objectives.

Investor Profile Description of Investor Requirements Suitable Instruments

Fixed Deposit Alternative

  • Seeking higher yields than bank deposits
  • Unwilling to compromise on safety
  • Prefers very safe issuers and issues

 

  • Bond should have stable prices and low volatility
  • Does not need to bear currency risk
  • Lowest risk of default
  • Emphasis on capital preservation and not chasing returns
  • Certificates of deposit
  • Investment grade sovereign bonds
  • Investment grade quasi-sovereign bonds
  • Examples: bonds issued by Singapore statutory boards such as the Land Transport Authority, Housing Development Board

Stable Income Seeker

  • Willing to take on risk in exchange for higher yields
  • Prefers more stable issuers

 

  • Stable cash flow stream
  • Low risk of default
  • Balance between capital preservation and yield
  • Investment grade corporate bonds
  • Examples: bonds issued by DBS Bank Ltd and Singapore Post Ltd

High Yield Seeker

  • Willing to take on even more risk in exchange for higher yields
  • Willing to invest in bonds that are issued by issuers that are perceived to have a higher risk of default

 

  • Highest yield and potential capital appreciation
  • High yield corporates
  • Non-investment grade government or quasi-sovereign bonds
  • Examples: bonds issued by the Indonesia government

The Research Team is part of iFAST Financial Pte Ltd.

All materials and contents found in this site are strictly for general circulation and informational purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found/identified in this site. While iFAST Financial Pte Ltd ("IFPL") has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this report is made on a general basis and neither IFPL nor any of its servants or agents have given any consideration to nor have they or any of them made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. You should consider carefully if the products you are going to purchase are suitable for your investment objective, investment experience, risk tolerance and other personal circumstances. If you are uncertain about the suitability of the investment product, please seek advice from a financial adviser, before making a decision to purchase the investment product. Past performance is not indicative of future performance. The value of the investment products and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. In respect of any matters arising from, or in connection with the said research analyses or research reports, recipients of the report are to contact IFPL at 10 Collyer Quay, #26-01 Ocean Financial Centre Building, Singapore 049315, or by telephone at +65 6557 2853. Where the report contains research analyses or research reports from a foreign research house and if the recipient of such research analyses or research reports is not an accredited investor, expert investor, institutional investor or an ex-accredited investor, IFPL accepts legal responsibility for the contents of such analyses or reports to such persons only to the extent as required by law. Please note that only certain security(ies) herein are available to all investors, while the rest are only available for certain persons to invest in, such as Accredited Investors (as defined in the Securities and Futures Act) or one who invests at least S$200,000 (or its equivalent currency) per transaction. To qualify as an Accredited Investor, one needs to submit a declaration form and certain relevant supporting documents, according to iFAST’s prevailing policies and procedures.

Please read our full disclaimers on the website at ( https://secure.fundsupermart.com/fsmone/policies/328125/investment-account-terms-&-conditions).

iFAST Financial Pte Ltd (IFPL) (registered address: 10 Collyer Quay #26-01 Ocean Financial Centre Singapore 049315, Telephone: 6557 2000) holds the Financial Advisers Licence issued by the Monetary Authority of Singapore ('MAS') to conduct regulated activities of advising on securities, marketing of collective investment schemes and arranging of any contract of insurance in respect of life policies, other than a contract of reinsurance and the Capital Markets Services Licence issued by the MAS to conduct regulated activities of dealing in securities and providing custodial services for securities. While IFPL has made every effort to ensure the independence of the report's contents, IFPL's nature of business is such that IFPL and its connected and associated entities together with their respective directors, officers and staff may be involved in providing dealing or investment-related services in the abovementioned securities, and have taken or may take positions in the securities mentioned in this report, and may also act as the principal for any buy or sell trades.

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