RETAIL investors can now research and buy bonds at online financial platform Fundsupermart.
The bond market has long been the preserve of the wealthy but keen interest among retail investors in the upcoming Singapore Savings Bond, a flexible, low-risk option, points to a huge pool of untapped buyers.
Fundsupermart noted yesterday: "Historically, it has been very difficult to find information on bonds for retail investors in Singapore and other parts of Asia."
The portal provides extensive research on more than 300 bonds, including those issued by the Government and corporations as well as high-yield instruments and quasi-sovereign offerings from Singapore and other international markets. Information such as the type of yield and return, and the potential risk, is available.
The minimum investment amount for bonds is generally $200,000.
The Fundsupermart.com site has tools like the Bond Selector, which can compare different types of bonds. There is a transparent fee structure so investors can see the bond price at once, removing the hassle of calling the client services hotline to find out.
Fundsupermart said there is a processing fee of 0.35 per cent based on the buy or sell order, and a platform fee of 0.05 per cent each quarter on the value of the asset. The firm said its bonds have a more competitive price, compared to buying from financial institutions, as it sources from various primary dealers to get the best deal.
Investors can contact Fundsupermart investment advisers for guidance on how to plan their investment and retirement portfolios. A dedicated website - www.bondsupermart.com - that provides only information on bonds has been set up for investors.
Mr Wong Sui Jau, former regional research director of iFast Financial, believes there will be interest in bonds among retail investors. He noted that when Fundsupermart.com was started in Singapore in 2000, a pool of investors emerged who were happy to buy and sell unit trusts on their own, suggesting the same response could occur with bonds.
Mr Wong, who is now a retirement planning ambassador at parent company iFast Corp, said: "The Asian bond market has been vibrant, and the bonds are usually taken by institutional investors, but now we are able to offer another investment option to retail investors."
This article was first published on May 22, 2015.
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