THE latest Citi Financial Quotient (Fin-Q) Survey by Citigroup on Singaporeans’ financial well-being and attitudes has found that general sentiment is perking up in tandem with the economic outlook and improving financial markets.
According to the survey, more Singapore residents are willing to invest and grow their wealth, albeit with greater caution.
Of the 40 per cent of respondents who ceased investing during the financial crisis, 13 per cent have resumed investment, while 31 per cent are open to doing so once an appropriate opportunity arises. Furthermore, one in five respondents continue to prefer holding their savings in cash or near-cash equivalents.
Additionally, survey findings also hinted at a resurgence in risk appetite.
Respondents who were investing or open to investing showed the most preference for equity instruments such as stocks as part of their portfolio (54 per cent), while 28 per cent picked mutual funds and unit trusts.
Lower-risk instruments such as corporate and government debt attracted 19 per cent each, with 20 per cent showing interest in buying property for future sale and rental yield as a potential area of investment.
However, respondents allayed their willingness to invest with increased wariness, with 25 per cent claiming greatly increased levels of caution, and 42 per cent saying that they were a little more cautious with their investment decisions.
The increased caution jibes with the survey’s findings that only 39 per cent of its respondents believe that the worst of the financial crisis is over.
Results also showed that Singapore residents’ top three financial concerns were rebuilding their savings, meeting monthly expenses, and greater retirement savings.
Six out of ten of those surveyed felt that their finances had been affected by the recent crisis, while 39 per cent said that their retirement savings had suffered serious losses due to it.
Respondents also recognised that their Central Provident Fund (CPF) monies required supplementation with their own retirement savings, with 73 per cent indicating that CPF funds will provide ‘only some’ or ‘very little’ of their necessary income in later years.
Following the financial crisis, Singaporeans continue to have concerns about how they spend. Three- quarters indicated that they had reduced non-essential spending, with 48 per cent putting off trips.
Shrikant Bhat, head of wealth management at Citibank Singapore, commented: ‘The survey accurately reflects the current investor sentiment in Singapore. With confidence and stability returning to markets, there is a discernible increase in willingness amongst investors to assume a little more risk.
‘However, it is also true that investors are asking a lot more questions about the products they buy and are making more informed investment decisions,’ he added.
Source: Business Times, 5 Jan 2010
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