United Overseas Bank (UOB) has launched a new investment tool in a bid to get more customers to invest instead of leaving their money in deposit accounts.
Customers who approach UOB for investment advice now have the option of tapping the UOB Income Builder, a group of three investment funds hand-picked by UOB's investment specialists.
The three funds are the Blackrock Multi-Asset Income Fund, the JP Morgan Global Income Fund and the Schroder Global Multi-Asset Income Fund.
They are each diversified funds that invest in various geographical markets and asset classes, including equities, bonds and real estate investment trusts (Reits).
UOB's head of personal financial services for Singapore, Mr Dennis Khoo, said the bank chose these three funds for its Income Builder because they are diversified and have a flexible asset allocation approach that allows the fund managers to move investmets among different asset classes quickly.
This helps to mitigate risks from volatile market conditions, he said.
Customers who are keen to invest in any of these funds can start by putting in a minimum sum of $1,000 a month. They can cash out the investment at any time.
"Traditionally, Singaporeans tend to gravitate towards the two ends of the spectrum - either very low-risk approaches such as keeping their money in cash products, or high-risk investments such as stock speculation. These funds fall in the middle and we think that's what Singaporeans need."
Of UOB's assets under management for customers with up to $100,000 with the bank, about 80 per cent is in cash products such as savings accounts, current accounts and fixed deposits, Mr Khoo said.