This article was written in collaboration with Tiger Brokers Singapore. All views expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not liable for any financial losses that may arise from any transactions and readers are encouraged to do their own due diligence. You can view our full editorial policy here.
Most of us know about investing in a single company through stocks or in a basket of companies through exchange-traded funds (ETFs). In fact, the prevailing investing advice for beginners is to diversify and invest in low-cost index funds or ETFs. Yet, some of the most well-known investment experts are mutual fund managers. For example, Benjamin Graham, the mentor of Warren Buffett and father of security analysis, reportedly managed a fund that earned 21% over 20 years.
Mutual funds are professionally managed investment funds that pool money from investors to buy securities which can be any tradeable financial asset (not just equities). Some mutual funds may be designed to track a particular index while others are actively managed by fund managers to achieve a certain investment objective such as to beat the market returns.
For those looking to invest beyond individual stocks or ETFs, mutual funds can be an investment option worth considering.
If you are already an existing investor or trader who invests in individual stocks and ETFs, you will be glad to know that investing in mutual funds wouldn’t require you to open a separate investment account. For example, existing Tiger Brokers account holders can use their Tiger Brokers account to invest in mutual funds via Tiger Brokers Fund Mall.
Besides the convenience of being able to invest in mutual funds with the same account that you are already using to invest in individual stocks and ETFs, here are 3 other reasons why you should consider investing in mutual funds via Tiger Brokers Fund Mall.
#1 You Have Access To Different Types Of Asset Classes Across Different Geographies and Themes
As an individual investor, our choices are usually limited to what is available on the SGX or what is offered by our brokerages. Asset classes such as bonds and money market funds tend to be out of reach because of the high investment quantum needed and are sometimes only offered to institutional or accredited investors.
However, we can gain access to these asset classes through mutual funds, where the fund managers can invest in alternative asset classes on our behalf as an institutional investor. Not only can you invest in different assets, but you can also tailor your investments to different themes and even different geographical markets.
For example, most of us are familiar with SPDR STI ETF which is an exchange-traded fund tracking the Straits Time Index (STI). However, if you are interested in blue-chip dividend stocks with a Singapore focus, the LionGlobal Singapore Dividend Equity Fund or NikkoAM Singapore Dividend Equity Fund may be mutual funds worth considering.
With Tiger Broker Fund Mall, you can search for different funds that match your investing preferences with their search filters.
Discover > Fund Mall > All > Filters
Alternatively, you can scroll through the funds curated for you under “Five Star” or follow the funds from the same fund manager.
Discover > Fund Mall
#2 You Can Access Both Equities And Mutual Funds With Single Account Access
For most investors, you would have a mix of investing strategies and invest across different asset classes. For example, you may have an ETF tracking the world index such as the Vanguard Total Stock Market Index Fund ETF (VTI) and you may choose to complement it with mutual funds that are focused on dividend and fixed income like BlackRock Total Return Fund. You may also have a few individual stocks in companies you strongly believe in such as Apple (AAPL). In addition, you may want to invest in a fund that focuses on small cap emerging markets stocks.
With Tiger Brokers Fund Mall, you no longer have to go through an intermediary such as a relationship manager, an agent or a broker to buy or sell funds or unit trusts. Instead of being restricted by what is available to you, you can invest according to your preferred investment strategy. You can 1) invest in ETFs or passively managed index funds and also 2) invest in a variety of sectors, themes and investment strategies through actively managed mutual funds or 3) invest in the stocks of individual companies you believe in.
You can access all these funds and equities in the same Tiger Brokers account, instead of having to manage multiple accounts and platforms. You can customise your portfolio with equities, complemented with mutual funds or vice versa, all within the same application. Single account access also means that it is easy to see – at a glance – your entire portfolio performance across equities, ETFs and mutual funds.
#3 You Can Dollar Cost Average Into Mutual Funds With Tiger Brokers Fund Mall
Dollar Cost Averaging is an oft-recommended investing method to avoid fear of missing out (FOMO) and to reduce volatility as you steadily accumulate the assets you want to invest in. However, it is difficult to implement this with mutual funds because traditional mutual fund providers tend to charge sales charges and / or platform fees. These and the high minimum amounts required make it prohibitive to implement a dollar cost averaging strategy when you invest a small amount each month into mutual funds.
Tiger Brokers Fund Mall offers a low entry to mutual funds with a low minimum purchase sum of US$100 for most funds and 0% sales charge. This means that you can implement a dollar cost averaging strategy with any of the mutual funds available in Fund Mall. In fact, Tiger Brokers Fund Mall offers a regular savings plan (RSP) for you to dollar cost average into your desired funds (and equities). You can set a RSP to automatically invest an amount as low as US$100 in a particular fund on a regular basis. You can even decide the day of the month you want to make the regular investment.
Tiger Brokers Fund Mall Provides A Convenient Platform To Start Investing In Mutual Funds
For investors who wish to branch out from equities and ETFs, mutual funds are a great way to start investing in other asset classes or to try out thematic investing. While there are other platforms available that also offer mutual funds, Tiger Brokers Fund Mall stands out for its single account access, wide availability of funds offered and low transaction costs. Along with the ability to set up a regular savings plan for mutual funds, Tiger Broker Fund Mall will suit beginners just starting to invest in mutual funds to more seasoned investors who want a simple way to accumulate their desired funds and manage their portfolios.
If you wish to start investing in mutual funds via Tiger Brokers Fund Mall, you will need a Tiger Brokers account. You can download the app via the App Store or Google Play, or to download it on your Mac or Windows if you prefer trading on your laptop/desktop.