Unit trusts are one of the most common investment vehicles available to retail investors in Singapore. A unit trust pools money from many investors and invests the combined capital in a diversified portfolio of assets such as equities, bonds, or multi-asset strategies.
According to MoneySense Singapore, a national financial education initiative supported by the Monetary Authority of Singapore (MAS), investors in a fund “pool their money with other investors and the fund manager invests it according to the fund’s objective.” Unit trusts offered to retail investors are regulated as collective investment schemes, providing oversight on disclosure, structure, and investor protection.
This guide explains the best ways to invest in unit trusts in Singapore in 2026, how each method works, and which approach may suit different investor profiles. It also highlights typical fees, minimum investments, and regulatory considerations so readers can make informed decisions.
Before investing, investors should review the Product Highlights Sheet (PHS) and official prospectus for each fund and confirm current fees and eligibility requirements.
Key facts about investing in unit trusts:
| Method | Category Type | How It Works | Typical Minimum | Typical Fees | Best For |
| Bank investment platforms | Distribution channel | Investors buy funds through bank platforms or relationship managers | Around SGD 1,000 lump sum depending on provider | Sales charge plus annual fund fees | Investors seeking research tools and guidance |
| Regular Savings Plan (RSP) | Contribution method | Automatic monthly investment into selected funds | From around SGD 100 per month with some banks | Fund expense ratio plus possible platform fee | Beginners building long term discipline |
| Lump sum investing | Contribution method | One time capital deployment into a fund | Fund specific minimums | Sales charge plus annual fund fees | Investors with available cash |
| CPFIS or SRS investing | Funding wrapper | Retirement savings used to purchase approved funds | Subject to CPFIS or SRS rules | Fund fees plus possible platform charges | Retirement focused investors |
| Digital advisory platforms | Distribution channel | Automated portfolios built using funds or ETFs | Often lower entry thresholds | Advisory fee plus fund expense ratio | Hands off investors |
Last verified: March 2026. Minimums and fees vary by provider and fund.
Many Singapore investors access unit trusts through major bank platforms. Banks provide access to a wide selection of funds from multiple asset managers.
Examples include investment platforms offered by major local banks that allow investors to research funds, track performance, and execute transactions online or through a relationship manager.
Typical characteristics
Advantages
Trade offs
Bank investment platforms are often suitable for investors who want structured guidance and integrated portfolio tracking.
A Regular Savings Plan allows investors to contribute a fixed amount every month into a selected unit trust.
Many Singapore providers offer RSP programmes with minimum monthly contributions starting around SGD 100, although the exact minimum depends on the platform and fund eligibility rules.
RSP investing follows the principle of dollar cost averaging, where investors buy more units when prices are lower and fewer when prices are higher.
Research from Vanguard indicates that dollar cost averaging can reduce the risk of poor market timing, although lump sum investing may generate higher returns in rising markets.
Advantages
Trade offs
RSPs are commonly used by new investors building long term portfolios with steady monthly contributions.
Lump sum investing involves investing a larger amount of capital at one time rather than gradually over several months.
Investors often use lump sum investing when deploying bonuses, windfalls, or accumulated savings.
Typical features
Advantages
Trade offs
Academic research from financial institutions has found that lump sum investing historically outperformed phased investing in rising markets, although it carries higher timing risk.
Singapore investors may also invest in selected unit trusts using retirement schemes such as the CPF Investment Scheme (CPFIS) or the Supplementary Retirement Scheme (SRS).
Under CPFIS, CPF members can invest part of their savings in eligible investment products including unit trusts.
SRS provides additional tax advantages for retirement investing.
According to the Inland Revenue Authority of Singapore (IRAS):
However, early withdrawals may trigger a 5 percent penalty and full taxation.
Advantages
Trade offs
This approach is commonly used by investors focused on long term retirement accumulation.
Digital advisory platforms provide automated investment portfolios that may include unit trusts, ETFs, or other funds depending on the provider.
Some platforms construct portfolios primarily using unit trusts, while others combine ETFs and funds.
Investors typically complete a risk profiling questionnaire, after which the platform recommends a diversified portfolio.
Typical characteristics
Advantages
Trade offs
Digital advisory platforms are often preferred by hands off investors seeking automated portfolio management.
Investment time horizon influences suitable fund types.
General guidelines include:
Historically, global equities have produced positive long term returns over multi decade periods, although short term volatility can be significant.
Unit trusts may include several types of fees:
According to MoneySense data as of 2025, active funds commonly charge between 1 percent and 2 percent annually, while passive funds typically charge below 1 percent.
Even small fee differences can significantly affect long term returns due to compounding.
Before investing, review key fund details:
These details help determine whether the fund aligns with an investor’s investment strategy.
Unit trusts vary widely in risk level.
Common categories include:
Higher expected returns usually come with higher volatility.
In Singapore, retail investment funds must comply with regulatory requirements.
Investors should verify that:
Regulation improves transparency but does not eliminate market risk.
Regular Savings Plans with smaller monthly contributions.
CPFIS or SRS funded unit trust investments.
Digital advisory platforms offering automated portfolios.
Bank investment platforms with wider fund selection.
Lump sum investing in diversified funds.
Minimum investments vary by platform and fund. Lump sum investments may start around SGD 1,000, while some Regular Savings Plans allow contributions from about SGD 100 per month depending on the provider.
No. Unit trusts are not principal or capital guaranteed, and investors may lose part or all of their investment depending on market performance.
Equity focused funds are generally more suitable for investors with a medium to long term investment horizon, often five years or more.
Unit trusts are typically purchased through distributors such as banks or platforms and are often actively managed.
Exchange Traded Funds (ETFs) trade on stock exchanges like shares and frequently track market indices.
Unit trusts provide retail investors with access to diversified portfolios managed by professional fund managers. In Singapore, investors can access these funds through several channels including bank platforms, Regular Savings Plans, lump sum investments, CPFIS or SRS retirement accounts, and digital advisory platforms.
Each approach has different advantages depending on the investor’s capital, time horizon, and involvement level. Regular Savings Plans may suit beginners building investment discipline, while lump sum investing and bank platforms may appeal to experienced investors with larger capital.
Before investing, investors should carefully review the Product Highlights Sheet, fund prospectus, platform fees, and eligibility requirements. Regulations provide oversight, but investment outcomes ultimately depend on market performance, fees, and investment strategy.
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