The Best Ways To Invest Your SRS Money 2025

7 Best Ways to Invest Your SRS Money

This guide covers the 7 best ways you can invest your SRS (Supplementary Retirement Scheme) money, from the lowest risk options for conservative investors, to higher-risk, higher-reward options for those who can take on more volatility.

The 7 Options (Lowest to Highest Risk):

1. Government Bonds

2. Cash Management Accounts

3. Robo-Advisor Income Portfolios

4. Endowment Plans

5. SGX Stocks

6. ETFs and Unit Trusts

7. Robo-Advisor Portfolios

1. Government Bonds — Lowest Risk

This is definitely the lowest risk option you can find, backed by the full faith and credit of the Singapore Government with the strongest AAA credit rating from international agencies.

But of course, you can't expect high returns from here.

Three Types of Singapore Government Bonds

Singapore Savings Bonds (SSB)

- Tenor of up to 10 years

- Can redeem anytime with just one month's notice

- Perfect if you want flexibility

Treasury Bills (T-Bills)

- Short-term instruments lasting 6 or 12 months

- Great for parking cash in the near term

- Safe with a fixed return

Singapore Government Securities (SGS)

- Longer-term bonds ranging from 2 to 50 years

- For investors who want to lock in stable yields for the long haul

Current Yields

All government bonds are currently yielding around 1.3% to 2% per year — which is quite low.

Interest rates have been dropping since last year, so unless you're ultra-conservative or waiting for better opportunities, you might want to look elsewhere for higher returns.

2. Cash Management Accounts — Low Risk, Better Yields

If you still want something low-risk but don't want to settle for tiny yields from government bonds, this could be a nice middle ground.

Available Options

StashAway:

- Simple Guaranteed — Fixed returns

- Simple — Projected returns

- Simple Plus — Projected returns (higher)

Syfe:

- Cash+ Flexi portfolio

Endowus:

- Full range from Cash Smart Secure to Ultra portfolio

Current Yields

Most cash management portfolios offer projected yields of around 1.6% to 2.7% per year, depending on which one you choose.

Why They Offer Higher Yields

They invest your money into short-term, high-quality instruments like:

- Money market funds

- Short-duration bond funds

Designed to squeeze out a bit more return without taking on too much additional risk.

The Catches

Catch #1: Still Investments, Not Deposits

Even though these accounts are low-risk, they're still investments. When markets turn volatile, they can experience temporary drawdowns.

Example: In 2022, when the Fed was aggressively hiking interest rates, both Endowus Cash Smart Enhanced and Cash Smart Ultra saw short-term losses.

If you hold on long enough, portfolios tend to recover once markets stabilize.

Catch #2: Declining Yields

Yields have been trending down. If you're using "Flexi" type portfolios, expect returns to gradually decline over time.

3. Robo-Advisor Income Portfolios — Moderate Risk

If you're okay with taking on a bit more risk for potentially higher returns, check out robo-advisor income portfolios.

How They Differ from Cash Management

- Cash management accounts — Focus on short-term stability

- Income portfolios — Designed to generate regular payouts and higher long-term returns

Current Yields

Most income portfolios offer payouts in the range of 4.8% to 6.5% per year.

That's easily around 3% higher than what you'd get from a typical cash management account.

Example: Syfe Income+

One popular option for regular income generation while activating the magic of compounding.

4. Endowment Plans — Guaranteed Returns with Stability

Before you say "stocks and ETFs give higher returns!" — hear me out.

While stocks and ETFs can potentially deliver higher returns, some people prefer stability. They'd rather have:

- Guaranteed payouts

- Capital protection

- A bit of insurance coverage

Instead of watching their portfolio swing up and down with every market headline.

How Endowment Plans Work

Payment Options:

- Pay a single premium upfront, OR

- Make regular payments over a few years

How Your Money Grows:

The insurer pools your money and invests in relatively safe assets:

- Bonds

- Fixed-income instruments

- Other low-volatility investments

Two Components of Returns:

- Guaranteed benefits — What the insurer promises to pay no matter what (if you hold to maturity)

- Non-guaranteed bonuses — Projections, not promises (depends on how well the insurer's participating fund performs)

Expected Returns

According to data from Investment Moats, long-term illustrated returns for endowment plans typically range between 3% to 4% per year.

Not fantastic, but for a low-risk investment, that's pretty reasonable.

Important Catch: No Early Withdrawals

Endowment plans are not meant for early withdrawals. If you surrender too soon, you'll likely get back less than what you paid due to upfront costs and surrender penalties.

Best suited for people who want disciplined savings, predictable returns, and a layer of protection.

Types of Endowment Plans

Short-Term (2-4 years):

- DBS Savvy Endowment 20

- Great SP

- Ideal for locking in a fixed rate for short-term needs

Long-Term (15-30+ years):

- AIA Smart Flexi Rewards

- Suitable for retirement planning or children's education

5. SGX Stocks — Direct Stock Investing

For those who don't mind volatility and want potential for much higher returns.

You can invest in a wide range of Singapore-listed counters:

- Banks

- REITs

- Blue chip companies

Two Things to Note

1. Corporate Actions Can Be Troublesome

If a company issues rights, you may need to top up your SRS account to subscribe — or else you'd get diluted. This can be tricky if you've already hit your yearly SRS contribution limit.

2. Board Lot Restrictions

SGX stocks trade in board lots of 100 shares, so you won't be able to invest as efficiently as fractional-share platforms. You might end up with idle cash sitting around.

Cheapest Brokers for SRS Stock Investing

POEMS Cash Plus:

- Commission: 0.08%

FSMOne:

- Commission: Flat S$8.80 per trade

Breakeven Point: S$11,000

- Below S$11,000 → POEMS is cheaper

- Above S$11,000 → FSMOne is the better deal

Good news: Both platforms don't charge platform or dividend handling fees.

6. ETFs and Unit Trusts — Flexible and Beginner-Friendly

In many ways, this is the most flexible and beginner-friendly way to invest your SRS funds.

Why ETFs and Unit Trusts?

1. Easy Diversification

Instead of guessing which company will outperform, you're investing in hundreds — or thousands — of them at once.

You won't pick the wrong stock if you pick all of them.

2. Lower Entry Cost

- ETFs: As little as $1

- Unit trusts: As little as $100

Use your SRS capital much more efficiently.

3. Easier to Manage

No messy corporate events like rights issues or bonus shares. Never worry about missing deadlines or topping up to avoid share dilution.

Singapore Market ETFs

Options:

- SPDR STI ETF

- Nikko AM STI ETF (now renamed to Amova Singapore)

Both track the top 30 companies in Singapore.

Trading Costs:

- POEMS: 0.08% commission

- FSMOne: Flat S$3.80 per trade

Note: FSMOne's 0% Regular Savings Plan (RSP) doesn't apply to SRS investments, only cash ones.

Breakeven Point: ~S$4,750

- Below S$4,750 → POEMS is cheaper

- Above S$4,750 → FSMOne is more cost-effective

US Market (S&P 500)

The S&P 500 tracks the 500 largest US companies. Historically returned about 10% per year on average over the long term.

Cheapest Methods:

- Amundi Prime USA Fund — Available via POEMS or Endowus

- IVV ETF — Via StashAway's ETF Explorer

StashAway generally offers the lowest overall fees over the long term, with POEMS coming in a close second.

Global Market

Global markets have historically returned around 9% per year — slightly lower than the US, but with more balanced exposure across regions.

Options:

- Amundi MSCI World Fund — Available on POEMS or Endowus

- ISAC ETF — Via StashAway's ETF Explorer

StashAway tends to be the most cost-efficient, followed closely by POEMS.

Thematic/Sector ETFs

StashAway's ETF Explorer also gives access to specialized ETFs:

- QQQ — US tech

- Gold ETFs — Inflation hedging

- Sector-focused — China, semiconductors, blockchain

Word of Caution:

Many thematic ETFs are more concentrated and volatile. Unless you really know what you're investing in, keep these as a small satellite position, not your core SRS holdings.

7. Robo-Advisor Portfolios — Hands-Off Approach

If you prefer a hands-off approach where something does all the heavy lifting for you, robo-advisors might be your best friend.

What Are Robo Portfolios?

Automated, diversified investment portfolios built and managed by algorithms.

You don't have to worry about:

- What to buy

- When to rebalance

- How to diversify

All you need to do:

1. Pick your risk level

2. Deposit the amount you want to invest

3. The robo takes care of everything

Main SRS-Compatible Robo Portfolios

- Syfe Equity100

- StashAway General Investing

- Endowus Flagship Portfolios

Each platform takes a slightly different approach. It's impossible to say which is "best" — choose one that fits your comfort level.

Fees

- StashAway: 0.3% to 0.8% per year (depends on investment amount)

- Syfe: 0.25% to 0.65% per year

- Endowus: ~0.4% per year

Key Benefit: Automatic Rebalancing

Robo portfolios are constantly managed and rebalanced behind the scenes. If markets move or certain assets grow too big, the system automatically adjusts your allocation to maintain your target risk level.

Summary: 7 Ways to Invest Your SRS Money

Lowest Risk Options

1. Government Bonds (SSB, T-Bills, SGS)

- Yields: 1.3% to 2% per year

- AAA credit rating, backed by Singapore Government

- Best for: Ultra-conservative investors

2. Cash Management Accounts

- Yields: 1.6% to 2.7% per year (projected)

- Options: StashAway Simple, Syfe Cash+ Flexi, Endowus Cash Smart

- Best for: Low-risk investors wanting slightly better returns

Moderate Risk Options

3. Robo-Advisor Income Portfolios

- Yields: 4.8% to 6.5% per year

- Example: Syfe Income+

- Best for: Regular income generation

4. Endowment Plans

- Returns: 3% to 4% per year (illustrated)

- Guaranteed component + non-guaranteed bonuses

- Best for: People who value stability and capital protection

Higher Risk, Higher Reward Options

5. SGX Stocks

- Direct investing in Singapore-listed companies

- Cheapest brokers: POEMS (0.08%) or FSMOne (S$8.80 flat)

- Best for: Hands-on investors comfortable with volatility

6. ETFs and Unit Trusts

- Singapore: SPDR STI ETF, Amova Singapore STI ETF

- US (S&P 500): Amundi Prime USA Fund, IVV ETF

- Global: Amundi MSCI World Fund, ISAC ETF

- Best for: Beginners wanting diversification

7. Robo-Advisor Portfolios

- Options: Syfe Equity100, StashAway General Investing, Endowus Flagship

- Fees: 0.25% to 0.8% per year

- Best for: Hands-off investors

Quick Broker Comparison for SRS

For SGX Stocks:

- Below S$11,000 → POEMS (0.08%)

- Above S$11,000 → FSMOne (S$8.80 flat)

For Singapore ETFs:

- Below S$4,750 → POEMS (0.08%)

- Above S$4,750 → FSMOne (S$3.80 flat)

For US/Global ETFs:

- StashAway ETF Explorer (lowest long-term fees)

- POEMS (close second)

- Endowus

This is for educational purposes only and not financial advice.