More families should ‘seriously consider’ disciplined investing over fixed deposits: Sias

MORE families should “seriously consider” growing their wealth through “disciplined investing”, as opposed to keeping their money in safe but low-yielding fixed deposits, said David Gerald, chief executive of the Securities Investors Association (Singapore), or Sias.

While savings do provide security, they earn little interest and so will erode over time due to inflation, noted Gerald.

He was speaking at the investor group’s 25th anniversary celebration dinner at One Farrer Hotel on Friday (Jul 12), where Health Minister Ong Ye Kung was guest of honour.

Families who wish to learn “proper investing” can do so under Sias’ guidance, Gerald said, noting that the investor group is an independent charity which does not sell products or services.

“We are here to help you and, at the same time, help more people participate in the Singapore markets,” he added.

Founded in June 1999, Sias counts close to 12,000 retail investors as members.

It has conducted more than 1,800 investor education programmes to date – ranging from seminars to certification courses – for more than 300,000 retail investors, based on information from its website.

Beyond investor education, Sias has also hosted “hundreds” of townhall sessions for individual shareholders to meet listed companies’ management.

It also regularly sends queries focused on financials, strategy and corporate governance to companies before their annual general meetings.

“Sias has (also) regularly intervened in many privatisation-cum-delisting offers whenever the prices offered are seen as being too low, or at too large discounts to asset or book values,” said Gerald.

“I am pleased to report that Sias’ appeals for minorities to get better prices were successful in a handful of cases,” he added.