5 ways I’m investing my SRS savings for yield or growth

This post was created in partnership with Amova Asset Management. All views and opinions expressed in this article are Beansprout's objective and professional opinions.

What happened?

When I first opened my Supplementary Retirement Scheme (SRS) account, my main motivation was the tax relief. 

Every dollar I contributed lowered my taxable income, and those immediate tax savings were appealing. 

So I dutifully deposited money into SRS each year. 

However, I didn’t take the next step of investing those funds.

They remained in cash, earning the default 0.05% per annum interest.

As I began thinking more seriously about retirement and building passive income, I realised that leaving my SRS savings idle wasn’t helping me make the most of this account.

With inflation outpacing the SRS account’s interest rate, my money’s real value was quietly diminishing over time.

To make the most of my SRS savings, I began exploring different investment options, including those that could help me earn potential yield, or capture growth over the long term. 

In this article, I’ll share five ways I  can invest my  SRS savings for yield or growth, from Singapore-focused ETFs and regional ETFs, to bond ETFs.

A glance at SRS and why I started looking at ETFs

For those unfamiliar, the SRS is a voluntary retirement savings scheme in Singapore aimed at helping Singaporeans, PRs, and foreigners boost retirement savings while reducing taxable income. 

Here are the key features:

• Tax relief on contributions: Every dollar contributed gets dollar-for-dollar tax relief
• Annual caps: S$15,300 for Singapore Citizens/PRs, or S$35,700 for foreigners
• Tax-advantaged growth: Your SRS investments grow tax-free
• Favourable withdrawal terms: When you withdraw at retirement age, only 50% of the withdrawal is taxable

When I first opened my SRS account, I’ll admit I was focused mainly on the immediate tax relief.

As I started thinking about how to invest my SRS funds, ETFs became one of the options I explored. 

They offer a simple way to put my money to work while keeping things cost-efficient.

• Low cost: Passive ETFs typically have much lower fees than traditional unit trusts, with many having expense ratios well below 1%. So more of my returns stay invested.
• Diversification: Buying an ETF gives me instant exposure to a basket of securities, helping reduce the risk of relying on an individual stock or bond.
• Convenience: ETFs trade on the stock exchange, so I can buy them easily through my brokerage using my SRS funds, just like buying any stock during market hours.
• Wide choice: Most Singapore Exchange (SGX)-listed ETFs are SRS-eligible (typically those that are SGD-denominated or have SGD trading currency), giving me a broad menu of options. It's worth verifying SRS eligibility with your bank or checking the SGX list.

With these advantages in mind, I set out to find which ETFs I could buy using SRS. 

What ETFs can I buy with SRS?

I can invest my SRS funds in eligible mutual funds in Singapore and SGX-listed securities. 

As I prefer to invest using ETFs,  the SGX is where I started looking.

The ETFs below are traded on the SGX, SRS-eligible, and offer a convenient way to diversify.

#1 – Singapore-focused ETF: Amova Singapore STI ETF

To capture growth in the Singapore economy, benefiting from local blue-chip companies, I may consider the Amova Singapore STI ETF for my SRS funds. 

The Amova Singapore STI ETF (formerly Nikko AM Singapore STI ETF, ticker: G3B.SI) tracks the Straits Times Index (“STI”), which represents the top 30 largest blue-chip companies by market capitalisation listed on the Singapore Exchange Main Board. 

It's a convenient way to invest in Singapore's largest banks, telcos, real estate, and consumer companies, the stalwarts of the local economy, all in one fund.

Beyond potential capital growth, the STI has historically offered a consistent dividend yield, giving investors a blend of both growth and income. 

As of 31 October 2025, the STI delivered an average yield of around 4.34%¹, and the ETF may also distribute dividend payouts semi-annually, at the discretion of the fund manager².

Here’s a quick summary of the Amova Singapore STI ETF:

For those who are looking to reinvest their dividends, you can take a look at the newly  launched accumulation share class of this ETF (Stock Code: GAB.SI).

Unlike the existing distribution share class which pays out dividends semi-annually² in cash, this accumulation share class automatically reinvests  dividend payouts² back into the fund and accumulates towards the investors’ holdings. 

By doing so, it helps investors to compound returns over time without needing to manage the cash payouts on their own. 

This offers greater convenience and may be particularly attractive for long-term investors who prefer capital accumulation.

Learn more about Amova Singapore STI ETF here

#2 – Bond ETFs for stability and passive income

For a lower risk option compared to equities, I may choose to allocate my SRS funds to bond ETFs such as the ABF Singapore Bond Index Fund and the Amova SGD Investment Grade Corporate Bond Index ETF. 

These bond ETFs provide stability, are generally less volatile than stocks, and have historically distributed payouts³ that can be reinvested.

ABF Singapore Bond Index Fund

The ABF Singapore Bond Index Fund (A35.SI) is Singapore’s first and most established Singapore  bond ETF, making it a solid lower-risk option compared to equities. 

The ABF fund invests in a portfolio of SGD-denominated Singapore Government Securities (SGS) and high-quality government-linked bonds. 

The average credit rating of the underlying bonds in the ETF is AAA⁴, the highest possible rating, which means that credit rating agencies view these bonds as having very low likelihood of default.

Here are some key features of the fund:

Learn more about ABF Singapore Bond Index Fund

Amova SGD Investment Grade Corporate Bond Index ETF

Another way to introduce stability and income potential into my SRS portfolio would be through the Amova SGD Investment Grade Corporate Bond Index ETF (MBH.SI). 

This ETF holds a basket of SGD-denominated investment-grade corporate bonds, offering exposure to high-quality issuers such as Singapore banks, utilities, and government-linked firms that have strong credit ratings.

As of 31 October 2025, the underlying bonds in the ETF have an average credit rating of A⁵, reflecting the ETF’s focus on quality.

Because the ETF invests in corporate bonds rather than government bonds, it generally offers a potentially higher yield. 

The weighted average yield to maturity⁶ of the ETF is 2.50% as of 31 October 2025. 

The bonds in the ETF are also denominated in Singapore dollars, minimising exposure to foreign currency risk. 

Here are some key details of the Amova SGD Investment Grade Corporate Bond Index ETF:

Learn more about Amova SGD Investment Grade Corporate Bond Index ETF

#3 – Regional ETFs: Diversifying into Asia

To diversify beyond Singapore while still tapping into Asia’s growth potential, I’ve been exploring regional ETFs such as the Amova MSCI Asia ex Japan ex China Index ETF and the Amova E Fund ChiNext Index ETF.

Amova MSCI AC Asia ex Japan ex China Index ETF

The Amova MSCI AC Asia ex Japan ex China Index ETF gives broad exposure across Asia-Pacific markets, excluding Japan and China. 

It tracks the MSCI AC Asia ex Japan ex China Index, and it also covers large- and mid-cap companies in South Korea, Taiwan, India, Australia, and Southeast Asia, spanning sectors such as tech, financials, and commodities.

Chart: Sector and country allocation of Amova MSCI AC Asia ex Japan ex China Index ETF 

By leaving out Asia’s two largest economies (China and Japan), which often dominate regional funds, this ETF provides a more balanced allocation across the rest of Asia. 

It’s a simple way to gain regional diversification without being overly concentrated in China or Japan.

The ETF can be traded in SGD (A93.SI) and USD (A94.SI) on the SGX. 

Learn more about Amova MSCI Asia ex Japan ex China Index ETF

Amova E Fund ChiNext Index ETF

For targeted growth exposure to China’s innovation economy, the Amova E Fund ChiNext Index ETF focuses on the ChiNext board. 

This index features growth-oriented Chinese companies in sectors like technology, biotech, new energy and consumer. 

The ETF aims to replicate the ChiNext Total Return Index by investing in an onshore ETF managed by E Fund in China through the China-Singapore ETF Link scheme.

The ETF can be traded in SGD Hedged (CXT.SI), USD (CXO.SI) and RMB (CXN.SI)

Learn more about Amova E Fund ChiNext Index ETF

How these SRS-eligible ETFs compare

To sum up the above choices, here's a quick comparison table outlining each ETF's category and objective.

As the table shows, each ETF serves a different role. And more importantly, all these ETFs are approved for SRS so I can invest in them directly through my SRS investment account.

Key things to consider when investing using SRS

When deciding how to invest your SRS funds, it’s important to keep these factors in mind:

# 1 – Risk appetite

Build a portfolio that aligns with your comfort level. 

For instance, ETFs that offer exposure to higher growth markets such as China may be more volatile, which means there may be more ups and downs over the short-term. 

While a larger allocation to bonds may have lesser volatility. 

#2 – Time horizon

SRS is meant for retirement, so understanding your time horizon can also help you determine your investment decision. 

If you take on more growth-oriented investments in the earlier years, you could benefit from compounding of your potential returns. 

As withdrawal age approaches, the focus often shifts toward generating retirement income, making income-producing assets a potentially useful addition to the portfolio.

#3 – Market risks

Each market comes with its own risks, from China’s regulatory environment to currency fluctuations in emerging economies. 

Diversifying across regions and asset classes may help manage these risks and reduce dependence on any single market.

What would Beansprout do?

While the SRS offers meaningful tax savings today, its true purpose lies in helping you build for retirement. 

Leaving those savings idle at 0.05% interest means missing the opportunity to grow them meaningfully over time, or earn a potential yield for passive income.

The real value of SRS comes from putting your money to work through investments. 

SRS-eligible Exchange Traded Funds (ETFs) can be a simple and effective way to do so. 

If growth is the goal, the Amova MSCI Asia ex Japan ex China Index ETF or the Amova E Fund ChiNext Index ETF offer exposure to markets with potential long-term growth. 

If you’re seeking income, the Amova SGD Investment Grade Corporate Bond Index ETF or the ABF Singapore Bond Index Fund can provide more stability and yield potential. 

And for a blend of both potential growth and income, the Amova Singapore STI ETF offers exposure to Singapore’s blue-chip companies with historically consistent dividend payouts⁷.  

You can get diversified exposure, and you can directly buy these ETFs on the SGX. 

By combining different types of SRS-eligible ETFs, such as equity ETFs for growth and bond ETFs for stability and yield, investors may even construct a balanced portfolio for their SRS savings that aligns with their risk appetite, time horizon, and long-term goals. 

Enjoy great perks when you invest your SRS with FSMOne between 1 November 2025 and 30 January 2026! 

New SRS investors earn 2X rewards and get an additional $5 when investing in the featured Amova ETFs.

FSMOne has been an advocate for low-cost investing. It is the first in the industry to offer flat-fee pricing for SGX-Listed ETFs. Check out the promotion here and trade with only a Flat Fee of $3.80.

Learn more about the Amova ETFs available for SRS investment and how they might fit into your retirement strategy.

Footnotes

¹Source: FTSE Russel Index Factsheet as of 30 September 2025. Dividend yield of the Straits Times Index is not the same as that of the Amova Singapore STI ETF. Past dividend yields are not indicative of future dividend yields.

²Distributions are not guaranteed and are at the absolute discretion of the Manager. Any distribution is expected to result in an immediate reduction of Fund’s NAV. Distributions may be paid out of capital which will result in capital erosion and reduction in the Fund’s NAV, which will be reflected in the redemption price of the Units. Please refer to the Fund Prospectus and Product Highlight Sheet for further details. 

³Distributions are not guaranteed and are at the absolute discretion of the Manager. Please refer to the Fund Prospectus and Product Highlight Sheet for further details.

⁴Source: Amova Asset Management Asia Limited as of 31 October 2025. Cash is included in the calculation of the average credit rating and is rated as AAA regardless of currencies held. The credit ratings of the underlying fixed income securities are determined by S&P and/or Moody’s, and where official credit ratings are unavailable, Amova Asia’s internal credit ratings are used.

⁵Source: Amova Asset Management Asia Limited. Cash is included in the calculation of the average credit rating and is rated as AAA regardless of currencies held. The credit ratings of the underlying fixed income securities are determined by S&P and/or Moody’s, and where official credit ratings are unavailable, iBoxx implied credit rating followed by Amova Asia’s internal credit ratings are used. 

⁶Source: Amova Asset Management Asia Limited. Yield to Maturity (YTM) of a bond is the average annualised rate of return expected if held to maturity. Weighted Average YTM (%) is calculated by weighting the bonds with market capitalisation and duration. Figure is in local currency yield terms and on unhedged foreign exchange basis. Please note that weighted average YTM does not represent the fund’s actual rate of return or distribution yield.

⁷Dividend yield of the Straits Times Index is not the same as that of the Amova Singapore STI ETF. Past dividend yields are not indicative of future dividend yields. 

Disclosure: This post is brought to you in collaboration with Amova Asset Management. All research and opinions are that of my own, and should not be taken as financial advice for your specific situation(s) as I know nothing about your individual financial circumstances, risk tolerance or investment objectives. I highly recommend that you use this as a starting point to understand more about Amova’s STI ETFs – including their accumulating and distributing class - which you can use for cash, CPF or SRS investing. Be sure to click into the respective links above to retrieve the fund prospectus and performance so as to help you decide whether it fits into your investment objectives.

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