Singapore stocks near record highs. Here's how to build a balanced Singapore portfolio

This post was created in partnership with Lion Global Investors. All views and opinions expressed in this article are Beansprout's objective and professional opinions.

What happened?

Singapore stocks have had a strong run in 2026, with the Straits Times Index (STI) reaching a record high of 5,713.19 on 29 July (Source: SGX). 

The rally has been supported by resilient corporate earnings, including strong results from the Singapore banks, as well as continued investor interest in Singapore assets.

Singapore’s AAA credit rating, resilient Singapore dollar and MAS’ expansion of the Equity Market Development Programme from S$5 billion to S$6.5 billion have also supported interest in local assets.

But even with the strong market performance, Singapore stocks can still be affected by global developments, geopolitical uncertainty and changes in interest rates.

This has left some investors wondering when the right time is to enter the market, or whether they should wait for a better opportunity.

Rather than trying to predict where markets will go next, we think it may be more useful to ask a different question:

What role does each part of our money need to play in our portfolio?

Money needed in the near term has a very different purpose from money invested for retirement.

So instead of simply looking for the investment with the highest potential return, we can think about how different investments can help us meet different financial goals.

Every investment serves a different purpose

I would think about a portfolio through four different objectives: liquidity, income, growth, and opportunity.

Each serves a different purpose.

Money that we may need at short notice should be kept relatively accessible. Money invested for income or long-term growth, on the other hand, may be able to take on more investment risk.

Thinking about our portfolio this way can help us decide which investments are more suitable for each financial goal.

To see how this can work in practice, let’s look at the different roles that cash, bonds, equities and gold may play in a portfolio and how Lion Global Investors’ funds and ETFs can help us build each part of it.

#1 – Liquidity: keeping money accessible

For money that we may need in the near term, such as emergency savings or upcoming expenses, our priority would usually be to keep it relatively stable and accessible.

This means we may not need to maximise returns on every dollar. Instead, we can look for investments that aim to keep investment risk relatively low while still generating some return.

LionGlobal SGD Money Market Fund

One option is the LionGlobal SGD Money Market Fund, which aims to manage liquidity and risk while providing a return comparable to SGD short-term deposits.

As of 30 June 2026, the fund had a weighted yield to maturity of 1.70% and a short weighted duration of 0.31 years, which means it has relatively low sensitivity to changes in interest rates. 

Its portfolio was entirely investment grade, with a weighted credit rating of AA, while its largest holdings were short-term MAS Bills as of 30 June 2026.

Here’s a quick summary of the LionGlobal SGD Money Market Fund:

The lower recent return reflects the decline in short-term Singapore dollar interest rates from the higher levels seen over the past few years.

Investors can also use SRS funds to invest in the SGD share classes.

For this part of our portfolio, we would therefore look at the fund less as a way to maximise returns and more as somewhere to keep money relatively stable and accessible.

#2 – Income: building sustainable cash flow

For investors looking to generate income, both bonds and dividend-paying equities can play a role.

Bonds provide income through the interest paid by their underlying securities, while dividend-paying equities can offer distributions together with the potential for capital growth.

LionGlobal Short Duration Bond Fund and Active ETF SGD Class

For fixed-income exposure, one option is the LionGlobal Short Duration Bond Fund, which invests in an actively managed portfolio of Singapore and international bonds.

The Class A SGD (Dist) share class dates back to 1991. As of 30 June 2026, the portfolio had a weighted yield to maturity of 3.14%, a weighted duration of 2.60 years and a weighted credit rating of BBB+. Financials and real estate were its two largest sector exposures.

Investors can access the same underlying strategy either through the traditional unit trust or the Active ETF SGD Class, which was listed on SGX in September 2025.

Here’s a quick comparison:

The main difference is how investors access the fund. The unit trust can be invested in through participating distributors and supports CPFIS-OA, CPFIS-SA and SRS, while the ETF can be bought and sold directly on SGX and supports SRS.

Both also offer distributing share classes, providing an option for investors looking to generate potential income from the fixed-income portion of their portfolio.

LionGlobal Singapore Dividend Equity Fund

For investors willing to take on more market risk in exchange for the potential for both income and capital growth, another option is the LionGlobal Singapore Dividend Equity Fund.

The fund aims to provide regular distributions and long-term capital growth by investing primarily in Singapore-listed companies with high and/or sustainable dividend yields, including equities, REITs and business trusts.

As of 30 June 2026, financials made up 42.8% of the portfolio. Its three largest holdings were DBS, OCBC and UOB, followed by Singtel and Keppel*.

Here’s a quick summary of the LionGlobal Singapore Dividend Equity Fund:

For investors focused on income, the SGD (QDist) share class aims to distribute quarterly. Investors can also use SRS funds to invest in the SGD share classes.

#3 – Growth: participating in Singapore's long-term opportunities

For money that we do not expect to need for many years, equities can play a role in helping us grow our wealth over time.

Beyond the recent rally in the STI, Singapore also continues to benefit from its position as a stable financial centre and initiatives such as the EQDP aimed at strengthening the local equity market.

For investors looking to participate in Singapore’s longer-term growth, there are different approaches, including active management and index-based investing.

LionGlobal Singapore Trust Fund

The LionGlobal Singapore Trust Fund is an actively managed Singapore equity fund that aims to achieve long-term capital appreciation.

Its SGD class dates back to March 1989, giving it a track record of more than three decades.

Active management gives the fund manager flexibility to invest beyond the largest STI companies. 

While familiar names such as DBS, OCBC, Singtel and UOB remain among its largest holdings, the portfolio also includes companies such as UOB Kay Hian and Ultragreen.ai* as of 30 June 2026.

Here’s a quick summary of the LionGlobal Singapore Trust Fund:

The SGD Class can also be invested in using SRS and CPFIS-OA funds.

 The LionGlobal Singapore Trust Fund is the only existing fund selected under the EQDP, while other EQDP managers are launching new funds. 

Lion-OCBC Securities Singapore Low Carbon ETF (SGX: ESG/ESU)

For investors who prefer an index-based approach to Singapore equities, another option is the Lion-OCBC Securities Singapore Low Carbon ETF.

The ETF tracks the iEdge-OCBC Singapore Low Carbon Select 40 Capped Index, which selects 40 Singapore-domiciled or incorporated companies while applying criteria aimed at reducing the carbon intensity of the index.

Its portfolio also looks somewhat different from a traditional STI exposure. While the three Singapore banks remain among its largest holdings, it also includes companies such as Sea, Trip.com and Grab* as of 30 June 2026.

The index uses a capped-weighting approach, which limits how much individual companies can contribute to the portfolio, and is reviewed semi-annually.

Beyond its sustainability focus, the ETF has also provided investors with dividend income since its 2022 listing. It is the top dividend-paying Singapore equities ETF on SGX in 2024, 2025, and the first half of 2026. (Source: SGX ETF market highlights for Q4 2024 and Q4 2025, as well as SGX’s ETF Trading Summary for June 2026)

Here’s a quick summary:

Compared with the LionGlobal Singapore Trust Fund, the key difference is the investment approach. 

The Singapore Trust Fund is actively managed, giving the fund manager discretion over which companies to own and how much to allocate to them. 

The Low Carbon ETF instead follows a defined index methodology, with a lower management fee of 0.40% per annum, compared with 1.25% for the Singapore Trust Fund.

For investors who want to use their retirement savings, the ETF can also be purchased using SRS funds, subject to the procedures of their broker or SRS operator.

#4 - Opportunity: diversifying beyond traditional equities

Beyond cash, bonds and equities, some investors may also look to other asset classes to diversify their portfolios.

Gold is one asset that is often used for this purpose because its performance is driven by a different set of factors from traditional equities and bonds. 

Based on Morningstar data cited by Lion Global Investors, gold generated a positive return in nine out of 10 major global equity market downturns since 2000.

This is why we would think of gold primarily as a portfolio diversifier.

LionGlobal Singapore Physical Gold Fund and ETF

For investors looking to gain exposure to physical gold, one option is the LionGlobal Singapore Physical Gold Fund.

The fund aims to track the LBMA Gold Price AM as closely as possible, before fees and expenses. 

As of 30 June 2026, 98.1% of the portfolio was held in allocated gold, with the remaining 1.9% in unallocated gold.

Allocated gold means specific physical gold is set aside for the fund. 

This gives investors exposure that is closely linked to movements in the underlying gold price.

Investors can access the strategy in two main ways: through the LionGlobal Singapore Physical Gold Fund, or through the LionGlobal Singapore Physical Gold ETF listed on SGX.

Here’s a quick comparison:

The unlisted fund offers USD, SGD and SGD-hedged share classes. The ETF can be traded on SGX in SGD under GLS or USD under GLU, and can also be purchased using SRS funds.

The main difference is how investors access their gold exposure, as well as the available share classes and fees.

How to build a Singapore portfolio with Lion Global Investors funds and ETFs

Putting everything together, we can see that different investments can play very different roles in a portfolio.

The key is not necessarily to own every asset class or every fund. 

Instead, we can start by identifying what we need each part of our money to do, before deciding which investment may be suitable.

For example, money we may need in the near term could sit in the liquidity portion of our portfolio, while money that we are investing for many years could be allocated towards growth.

Investors looking for regular cash flow may place greater emphasis on income, while assets such as gold could play a smaller role in providing diversification alongside the core portfolio.

Ultimately, how much we allocate to each part will depend on our financial goals, risk tolerance, and investment horizon.

Key risks and considerations

Different asset classes can play different roles in a portfolio, but each comes with its own risks. Here are a few things we would keep in mind.

#1 – Liquidity does not mean the same thing as cash

The LionGlobal SGD Money Market Fund is valued and deals every dealing day, which means investors can generally subscribe to or redeem their units on each dealing day rather than locking their money away for a fixed tenor.

However, daily dealing does not mean that the money is available immediately. Redemption requests still need to be processed according to the fund and distributor's procedures.

It is also important to remember that a money market fund is still an investment and not a bank deposit. Its returns and capital are not guaranteed.

#2 – Bond funds can still fluctuate in value

While shorter-duration bonds tend to be less sensitive to changes in interest rates than longer-duration bonds, they are not risk-free.

The LionGlobal Short Duration Bond Fund can be affected by changes in interest rates and the creditworthiness of its issuers. 

While it generally invests in investment-grade bonds, it may also have exposure to sub-investment-grade securities.

#3 – Singapore equity funds can still be concentrated

Investing in a fund provides diversification across individual companies, but it does not necessarily remove sector or geographical concentration.

For example, financials made up 42.8% of the LionGlobal Singapore Dividend Equity Fund, with DBS, OCBC and UOB among its largest holdings as of 30 June 2026 (Source: Lion Global Investors).

The LionGlobal Singapore Trust Fund is also focused primarily on companies with significant exposure to Singapore, which means its performance can be more affected by developments in the local market than a globally diversified equity fund.

#4 – Gold can diversify a portfolio, but its price can still fluctuate

Gold has historically behaved differently from equities during many periods of market stress, which is why we see it primarily as a portfolio diversifier.

But that does not mean gold will always rise when other assets fall.

For example, the LionGlobal Singapore Physical Gold ETF returned -11.9% as of 30 June 2026 since its inception in March 2026, broadly in line with its benchmark return of -11.8% over the same period.

The Physical Gold Fund is also concentrated almost entirely in gold, with about 98% of its portfolio held in allocated gold as of 30 June 2026. 

This means its value will be heavily influenced by movements in the gold price.

#5 – Distributions are not guaranteed

Some of the funds and ETFs discussed above offer distributing share classes, but the amount and frequency of distributions can change.

Distributions may be paid from income, capital or both, and paying a distribution can result in an immediate reduction in the fund's NAV.

#6 – ETFs come with additional trading considerations

Unlike unit trusts that are transacted based on their NAV, ETFs are bought and sold on SGX throughout the trading day.

This means their market price can trade above or below their NAV, while trading liquidity and bid-ask spreads can also affect the price investors pay or receive.

Some of the ETFs discussed above can also be traded in both SGD and USD. 

The currency used to trade an ETF should not automatically be taken to mean that the underlying investment has no foreign-currency exposure, so investors should check the relevant fund and share class before investing.

Ultimately, one of the biggest risks is choosing an investment that does not match what we need the money for.

Before deciding how much to allocate towards liquidity, income, growth or diversification, we would first consider when we need the money, how much volatility we can tolerate, and what role the investment is meant to play.

What would Beansprout do?

With Singapore stocks near record highs, you do not necessarily need to predict whether the market will rise further or wait for the perfect entry point.

Instead, start by asking what role each part of your money needs to play.

Start with money you may need in the near term, such as emergency savings or upcoming expenses.

For this portion, your priority may be liquidity and stability rather than maximising returns, which is where a money market fund could play a role.

For money you do not need immediately, you could consider fixed income as a source of potential income, without relying solely on equities.

If you are comfortable with greater volatility, dividend-paying equities could also offer income together with the potential for capital growth.

For money you can leave invested for many years, you may be more comfortable taking on equity-market volatility.

For Singapore exposure, you could choose between an actively managed approach, such as the LionGlobal Singapore Trust Fund, and an index-based approach, such as the Lion-OCBC Securities Singapore Low Carbon ETF, depending on the type of exposure you are looking for.

Finally, consider whether an asset such as gold could add useful diversification alongside your cash, bonds and equities.

We would generally see this as a complement to the core portfolio rather than a replacement for it.

Ultimately, how you allocate across liquidity, income, growth and diversification will depend on when you need the money, how much volatility you are comfortable with, and what financial goals you are investing towards.

How to access Lion Global Investors’ funds and ETFs

Whether you are looking to keep your money accessible, generate income, pursue long-term growth, or diversify beyond equities, you can explore Lion Global Investors Signature Singapore Suite to see which funds and ETFs may fit the different roles in your portfolio. 

The funds are available through participating platforms including OCBC, FSM Global, iFAST, Moomoo, and POEMS.

Availability may vary by fund and platform, with selected funds also eligible for CPFIS and/or SRS where applicable.

Before investing, check the relevant fund or share class, eligibility and risks to ensure it aligns with your financial goals, risk tolerance and investment horizon. 

Past performance is not necessarily indicative of future performance. For unit trusts, returns are based on a single pricing basis. For ETFs, returns are based on a NAV-NAV basis. Dividends (if any) are reinvested net of all charges payable upon reinvestment and in respective share class currency terms. Past performance data include Maximum Initial Charge for the respective share classes (where applicable), which may or may not be charged to investors. Return periods longer than 1 year are annualised. Lion Global Investors, as of 30 June 2026. 

 *Securities referenced are not intended as recommendations to buy or sell securities.

Disclaimer – Beansprout

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Any information provided in this article is meant purely for informational and investor education purposes and should not be relied upon as financial or investment advice, or advice on corporate finance.

This article is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to purchase any financial product. It does not take into account your personal circumstances and shall not constitute financial advice. You should consult your own independent financial, accounting, tax, legal or other competent professional advisors.

Disclaimer - Lion Global Investors Limited 

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore (the “MAS”). It is for information only, and is not a recommendation, offer or solicitation for the purchase or sale of any capital markets products or investments and does not have regard to your specific investment objectives, financial situation, tax position or needs. You should read the prospectus and Product Highlights Sheet of the relevant fund/ETF which are available and may be obtained from Lion Global Investors Limited (“LGI”) or any of its distributors and appointed Participating Dealers (“PDs”), for further details including the risk factors and consider if a fund/ETF is suitable for you and seek such advice from a financial adviser if necessary, before deciding whether to invest in the fund/ETF. Applications for units in our funds must be made on forms accompanying the prospectus.

 Investments in our funds/ETF are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of a fund/ETF is not guaranteed and the value of units in a fund/ETF and the income accruing to the units, if any, may rise or fall. Past performance, payout yields and payments as well as any predictions, projections, or forecasts are not necessarily indicative of the future or likely performance, payout yields and payments of a fund/ETF. Any extraordinary performance may be due to exceptional circumstances which may not be sustainable. Dividend distributions, which may be either out of income and/or capital, are not guaranteed and subject to LGI’s discretion. Any such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value of the fund/ETF. Any references to specific securities are for illustration purposes and are not to be considered as recommendations to buy or sell the securities. It should not be assumed that investment in such specific securities will be profitable. There can be no assurance that any of the allocations or holdings presented will remain in the fund/ETF at the time this information is presented. Any information (which includes opinions, estimates, graphs, charts, formulae or devices) is subject to change or correction at any time without notice and is not to be relied on as advice. You are advised to conduct your own independent assessment and investigation of the relevance, accuracy, adequacy and reliability of any information or contained herein and seek professional advice on them. No warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on such information. The fund/ETF may, where permitted by the prospectus, invest in financial derivative instruments for hedging purposes or for the purpose of efficient portfolio management. LGI, its related companies, their directors and/or employees may hold units of a fund/ETF and be engaged in purchasing or selling units of a fund/ETF for themselves or their clients. 

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For all Exchange-Traded Funds managed by Lion Global Investors Limited (“LGI”): 

Please refer to the Prospectus for further details. The units of the ETF are listed and traded on the Singapore Exchange (“SGX”), and may be traded at prices different from their net asset value, suspended from trading, or delisted. Such listing does not guarantee a liquid market for the units. You cannot purchase or redeem listed units in the Fund directly with the manager of the Fund, but you may, subject to specific conditions, do so on the SGX or through the PDs. 

For LionGlobal Singapore Trust Fund, LionGlobal Singapore Dividend Equity Fund and Lion-OCBC Securities Singapore Low Carbon ETF: 

The Fund’s net asset value may have higher volatility as a result of its narrower investment focus on a limited geographical market, when compared to funds investing in global or wider regional markets. 

For LionGlobal Short Duration Bond Fund (Listed and Unlisted Share Class) 

The LionGlobal Short Duration Bond Fund (the “Fund”) is not like a typical unit trust offered to the public in Singapore. The Fund comprises both classes of units listed and traded on the Singapore Exchange (“SGX-ST”) and classes of units which are neither listed on the SGX-ST nor any other stock exchange. 

The Fund may invest in Tier 1 and Tier 2 capital instruments that carry elevated risks, including potential write-down, conversion to equity, suspended coupons and loss of capital.

 The Fund is an actively managed fund. 

Please refer to Prospectus for discussion of certain factors to be considered in connection with an investment in the listed units of the Fund on the SGX-ST. 

For LionGlobal Singapore Physical Gold Fund (Unlisted and Listed Share Class) 

The LionGlobal New Wealth Series II - LionGlobal Singapore Physical Gold Fund (the “Fund”) is not like a typical unit trust offered to the public in Singapore. The Fund comprises both classes of units listed and traded on the Singapore Exchange (“SGX-ST”) and classes of units which are neither listed on the SGX-ST nor any other stock exchange. The LionGlobal New Wealth Series II - LionGlobal Singapore Physical Gold Fund (the “Fund”) is not like a typical unit trust offered to the public in Singapore. The Fund comprises both classes of units listed and traded on the Singapore Exchange (“SGX-ST”) and classes of units which are neither listed on the SGX-ST nor any other stock exchange. 

An investment in a precious metals fund carries risks of a different nature from other types of collective investment schemes which invest in transferable securities and a precious metals fund may not be suitable for persons who are adverse to such risks. 

An investment in a precious metals fund is not intended to be a complete investment programme for any investor. As a prospective investor, you should carefully consider whether an investment in a precious metals fund is suitable for you, taking into account, your investment objectives, risk appetite and the potential price movements of precious metals. You are responsible for your own investment choices. 

The Fund’s net asset value may have higher volatility due to its narrower investment focus (primarily in Gold (as defined in the prospectus)), when compared to funds with more diversified portfolios. 

Please refer to Prospectus for discussion of certain factors to be considered in connection with an investment in the listed units of the Fund on the SGX-ST. 

Disclaimer - ICE Benchmark Administration Limited 

THE LBMA GOLD PRICE, WHICH IS ADMINISTERED AND PUBLISHED BY ICE BENCHMARK ADMINISTRATION LIMITED (IBA), SERVES AS, OR AS PART OF, AN INPUT OR UNDERLYING REFERENCE FOR LIONGLOBAL SINGAPORE PHYSICAL GOLD FUND. 

LBMA GOLD PRICE IS A TRADE MARK OF PRECIOUS METALS PRICES LIMITED, AND IS LICENSED TO IBA AS THE ADMINISTRATOR OF THE LBMA GOLD PRICE. ICE BENCHMARK ADMINSTRATION IS A TRADE MARK OF IBA AND/OR ITS AFFILIATES. THE LBMA GOLD PRICE AM, AND THE TRADE MARKS LBMA GOLD PRICE AND ICE BENCHMARK ADMINISTRATION, ARE USED BY LION GLOBAL INVESTORS LIMITED WITH PERMISSION UNDER LICENCE BY IBA. 

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