Singaporean retail investors are among the most decisive and diversified globally, according to eToro’s Q2 Retail Investor Beat survey. The survey highlights that Singaporean investors are less likely to be uncertain about their investment choices compared to the global average. Only 12% of Singaporeans were unsure about which sector to invest in next, compared to 19% globally. Similarly, only 11% were uncertain about asset classes, against 17% globally.
The survey also reveals that Singaporean investors are highly diversified across asset classes. For instance, 82% hold cash assets compared to 67% globally, and 54% hold domestic bonds versus 39% globally. Singaporeans also have a higher exposure to foreign equities and bonds than their global counterparts.
Despite their diversification, Singaporeans are underweight in materials and mining stocks, with only 17% holding these compared to a 26% global average. However, they diversify across regions, with 58% holding US assets, 27% in China, and 35% in emerging markets, all significantly higher than global averages.
Zavier Wong, Market Analyst at eToro Singapore, attributes this decisiveness and diversification to Singapore’s proximity to major markets like China and Japan, and the high level of market engagement among Singaporeans. “Singapore also has one of the most hyperconnected retail bases globally,” Wong noted, highlighting the swift reaction of local investors to market changes, such as the recent shift in concerns over the Middle East conflict.
This decisiveness and diversification position Singaporean investors uniquely in the global market landscape, potentially allowing them to adapt quickly to future market shifts.
