Don’t you agree that the previous definition of Specified Investment Products was way too broad? Now, you’ll no longer have to jump through hoops just to invest in Exchange-Traded Funds (ETFs).
Last month, the Monetary Authority of Singapore (MAS) announced that it would be opening up more investment options to help strengthen retirement adequacy.
One of the changes was to make it easier for local investors to buy Exchange-Traded Funds (ETFs) – index funds that passively track a benchmark.
MAS said it is doing so in response to market feedback that “funds which make limited use of derivatives are relatively less complex and should be made accessible to retail investors” (that’s everyday individual investors like you and I).
If you ask us, it’s a change that’s long overdue.
Under the new rules, only ETFs that use derivatives substantially will be classified as Specified Investment Products (SIPs). In other words, a number of ETFs – predominantly cash-based ones, those that trade in gold as well as those that use derivatives only for hedging or efficient portfolio management purposes – will migrate from the SIPs camp to the Excluded Investment Products (EIPs) umbrella.
This is great news for individual investors, especially if you’ve been griping over …read more