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.
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
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.
- 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
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.
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.
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
Most cash management portfolios offer projected yields of around
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If you're okay with taking on a bit more risk for potentially higher returns, check out robo-advisor income portfolios.
- Cash management accounts — Focus on short-term stability
- Income portfolios — Designed to generate regular payouts and higher long-term returns
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.
One popular option for regular income generation while activating the magic of compounding.
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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.
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:
-
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
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.
POEMS Cash Plus:
- Commission: 0.08%
FSMOne:
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In many ways, this is the most flexible and beginner-friendly way to invest your SRS funds.
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.
Options:
- SPDR STI ETF
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
- 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.
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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
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
This is for educational purposes only and not financial advice.
The Best Ways To Invest Your SRS Money 2025
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.
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.
- Non-guaranteed bonuses — Projections, not promises (depends on how well the insurer's participating fund performs)
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.
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.
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
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.
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
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 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.
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.
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
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.
- Best for: People who value stability and capital protection
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
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
