As inflationary pressure continues to mount in Singapore, many investors search for safe-haven investments that can protect their capital. One asset class that has historically performed well during periods of inflation is mutual funds. In this article, let’s look at Singapore’s best performing mutual funds during inflationary periods. You can also follow this link https://www.home.saxo/en-sg/products/mutual-funds for more information.
What is inflation?
Inflation is an economic phenomenon characterized by a sustained increase in the general price level of goods and services in an economy. In other words, inflation reflects a decrease in the purchasing power of a unit of currency.
Why is inflation a concern for investors?
Investors are typically concerned about inflation because it erodes the value of their investments. For example, if you invest $10,000 in a stock that pays no dividends and the inflation rate is 3%, then the actual value of your investment will be $9,700 at the end of the year.
Next we look at some of the Here best performing mutual funds in Singapore during inflationary periods based on data from the past ten years. The funds on our list had all outperformed their benchmarks and have provided investors with solid returns even when the overall market was struggling.
DBS Equity Fund
This fund aims to provide investors with long-term capital growth by investing in a portfolio of blue-chip stocks listed on the Singapore Exchange. The fund has a track record of outperforming its benchmark, the Straits Times Index, during periods of inflation.
OCBC Blue Chip Investment Fund
This fund invests in a portfolio of 30 to 50 large-cap stocks listed on the Singapore Exchange. The fund has a solid track record of achieving positive returns and outperforming the Straits Times Index during inflationary periods.
UOB Kay Hian Premier Growth Fund
This fund strives to give long-term capital appreciation by investing in a diversified portfolio of high-growth stocks. During periods of inflation, the fund has a solid track record of outperforming its index, the Straits Times Index.
LionGlobal Growth Fund
The Growth Fund seeks to provide long-term capital growth to investors by investing in a stock portfolio of high-growth businesses. During years of inflation, the fund has a good track record of outperforming its Straits Times Index benchmark.
OCBC Premier Growth Fund
This fund invests in a portfolio of 20 to 40 large-cap stocks listed on the Singapore Exchange. The Singapore Stocks and Government bond fund has a track record of delivering steady performance and outperforming the Straits Times Index in inflationary times.
Aberdeen Islamic World Equity Fund
This fund invests in a portfolio of Shariah-compliant stocks from around the world. The fund has a solid track record of delivering consistent returns and outperforming its benchmark, the MSCI World Index, during periods of inflation.
Schroder International Selection Fund – Asian Growth Leaders
This fund invests in a portfolio of high-growth stocks from across Asia. The fund’s performance during periods of inflation has surpassed that of its benchmark, the MSCI AC Asia Pacific ex-Japan Index, by a significant margin.
First State Greater China Growth Fund
This fund invests in a portfolio of high-growth stocks from mainland China, Hong Kong, and Taiwan. The fund has an excellent track record of delivering consistent returns and outperforming its benchmark, the Hang Seng Composite Index, during periods of inflation.
DBS Treasures Greater China Equity Fund
This fund invests in a portfolio of high-growth stocks from mainland China, Hong Kong, and Taiwan. The fund has a well-grounded track record of delivering consistent returns and outperforming its benchmark, the Hang Seng Composite Index, during periods of inflation.
Manulife US Dollar Income Fund
This fund seeks to provide investors with income and capital growth by investing in a portfolio of dividend-paying stocks from the United States. The fund has a solid track record of producing consistent returns and outperforming the Dow Jones Industrial Average during periods of inflation.