The Best Short-Term Investment In Singapore

Short-term investments are often chosen by investors who want to access their money quickly, or wish to get a better returns on their investments compared to traditional savings or fixed deposits.
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‍BigFundr’s loan notes are typically between 6 and 18 months.

Thinking about where to invest your money for the short term? Here are some options.

1) Singapore Savings Bonds (SSB) are a type of government bond issued by the Singapore government. They are considered to be a very safe investment, and offer yields of around 2% to 3% per annum.

2) Singapore Government Treasury Bills (T-bills) are a type of short-term government debt security issued at a discount to its face value. T-bills typically offer yields that are slightly higher than Fixed Deposits, but they are usually offered for fixed tenures of 6 months and 1 year.

3) Singapore Government Securities (SGS) are a type of government debt security issued by the Singapore government. SGS bonds pay a fixed rate of interest and mature between 2 and 50 years. Although SGS bonds cannot be redeemed early, they can be traded on the secondary market.

4) Fixed Deposits (FDs) are a type of savings account that offers a fixed interest rate for a specified period of time, typically 12 months or more. FDs offer higher interest rates than savings accounts, but one may incur a penalty if the money is withdrawn early.

5) Money Market Funds are a type of mutual funds that invest in high-quality and short-term debt securities. Money Market Funds typically offer yields that are higher than savings accounts, but they are more risky than Fixed Deposits.

6) Property-Backed Lending is a type of investment where investors lend money to property developers in exchange for a fixed interest rate and a repayment of the principal amount over a specified period of time. The property that is being financed acts as collateral, hence the investor will be repaid even if the borrower defaults. BigFundr offers such investment options.

There are several benefits to short-term investments in property-backed lending, including:

1. Higher Returns
Property-backed lending typically offers higher returns than traditional savings accounts.

2. Diversification
Property-backed lending is a form of investment in property loans. Investors can diversify their investment portfolio by investing in various property loans and reaping fixed returns without owning a physical property.

3. Security
Property-backed lending is secured by real estate as collateral. The real estate is the asset that is pledged as security for the property loan.

There are also some risks associated with short-term investments in property-backed lending, including:

1. Lack of Liquidity
Property-backed lending can be illiquid, so it may be difficult to sell your investments if you need to access your money quickly.

The loan notes issued by BigFundr only need to be held for a short period ranging from 6 to 18 months. With a minimum investment amount of only S$1,000, you can choose how much you want to invest and how long for.

2. Default Risk
The Borrower may default on the loan, which could result in a loss for the investor.

In the event of borrower default, our strategic partner and shareholder, Maxi-Cash*, will immediately step in to facilitate punctual repayment of monies to our investors.

BigFundr / Maxi-Cash* will then proceed to recover the funds thereafter by exercising our first legal charge on the real estate, seeking recourse from the Borrower to recover the loan, and exercising the buy-back provision from the Fund Management Companies.

3. Market Volatility
If property prices go down more than the value of the developer’s equity, then the project may become economically unviable. In such instances, the developer may default on their loan.

‍At BigFundr, we typically lend on a maximum of 70% on the value of the loan, and require a developer’s personal guarantee. This provides a buffer against such market volatility.