Credit Bureau (Singapore) Pte Ltd

If you’re serious about making your money work for you, you need to think about investing. But deciding where to put your money isn't something you should rush.

Before you leap into any investment decision, there are some important rules you should follow:

Set your goals
Decide what it is that you are trying to achieve. Where do you want to be at some point in the future? What is the final outcome that you want from your investments and what is your time frame? Think about debt - is investing the right option for you right now? Would you be better off using your money to pay off high interest debt (e.g. credit card, hire purchase), or to reduce your mortgage?
Know your risk profile

You need to know what sort of investor you are - essentially, how much money are you willing to lose? How much volatility (ups and downs) can you tolerate?
Know how you want to invest your money

What type of investment suits your risk profile? Bonds, shares, property, short-term bank investments? Will you invest directly yourself or use managed funds? Talk to a qualified financial adviser.
Do your homework

Research, compare and contrast everything – or get someone to do that for you. Read the business sections of the newspaper; go online; talk to your adviser, bank manager, or accountant. Get a feel for which company is respected, which is offering consistently good returns.
Research different companies’ investment options

If you are going to invest directly in a company, find out which companies suit your profile. Do they offer the type of investments you are after? What are the rates of return for each investment? What is the level of risk associated with the return?
Research the companies themselves

What does the company do? What markets is the company in? Who is running the company? Have they ever been declared bankrupt?
How is the company run? Does the board have independent directors?
How has the company performed in recent years - is there a steady performance over time?
Seek independent advice

Contact an investment adviser – but be sure they’re independent.
Spread your risk
Don’t put all your eggs in one basket – spread your risk around different options and different companies. For example, if you are considering high risk investments, you can balance your risk with other investments in lower risk areas, like short term deposits or cash and bonds.