SINGAPORE: A recent survey by the Securities Investors Association (Singapore) (SIAS) and investment platform Beansprout has revealed that more than 80% of respondents are either interested in or open to investing in Singapore stocks. However, investment decisions are heavily influenced by concerns over returns, market liquidity, and the availability of attractive investment options.
According to the survey, which collected 1,011 responses over a three-month period from SIAS and Beansprout members as well as the general public, returns emerged as the top priority for investors—outweighing all other considerations.
Despite a strong willingness to invest in Singapore stocks, respondents cited several challenges that hinder participation in the market. Many investors hesitate to commit funds due to concerns over low returns, as expected gains are often seen as insufficient.
There is also a perception that Singapore’s stock market offers a limited number of compelling investment opportunities, which reduces investor enthusiasm. Market liquidity also remains a significant factor, with concerns about the ease of buying and selling stocks influencing investment decisions.
The survey found that older investors tend to allocate a larger portion of their portfolio to Singapore stocks. This preference is driven by familiarity with local companies and a perception of market stability, making them more comfortable committing funds compared to younger investors.
Rather than simply increasing the number of available stocks, investors expressed a stronger preference for better-quality investment options, as well.
The study also shed light on how crucial a role research reports play in shaping investor confidence, particularly among beginners who rely on expert analysis to guide their decisions. Financial news websites and article-based formats have overtaken traditional brokerage PDF reports as the preferred medium for research, highlighting a growing need for easily accessible and digestible market insights.
The SIAS survey suggests that enhancing market returns and liquidity, while addressing the perceived lack of attractive investment choices, could encourage more participation in Singapore’s stock market. With returns remaining the dominant factor in investment decisions, market players may need to focus on delivering stronger performance and ensuring that investors have the right tools and information to make informed choices.