Before you start investing, it would be ideal to understand your investment objectives in the first place.
This is important because your investment objectives will ultimately determine what you should invest in. For example, if your objective is to invest for your retirement, then you should look at long-term investment instruments such as the CPF Special Account and certain bonds, such as the Singapore Savings Bonds or highly rated corporate bonds.
On top of these, you can also look at other form of investment products that could potentially provide you with higher returns, depending on your risk appetite. Always be reminded that with higher expected returns come higher risks.
Some ways to reduce risk would be to have a longer time horizon for your investments and to consider dollar-cost averaging. This is the reason why it’s better to start investing when you are younger, as it gives you more time to compound your returns.
If you are working with an investment advisor, sharing your investment objectives with your advisor would also ensure that he or she creates an investment portfolio that best fits your objectives.