Last Updated on 2022-10-13 , 11:40 am
So, you’ve recently entered the workforce and have a little figurative pile of extra cash lying in your bank account.
The tiny devil on your right shoulder thinks you should blow it all on video games and bubble tea, but then again this was the same guy who told you to meet your friends during the circuit breaker.
Meanwhile, the angel on your left shoulder strongly believes you should invest that money so you can grow your wealth and be the next Warren Buffett.
You decide to go with the one with wings, but where do you start?
With so much conflicting information on the web, beginning your investing journey can be a daunting task, especially when you don’t really have much to begin with.
But the good news is there’s now an app that will simplify everything and allow you to invest minuscule amounts at a time.
That’s right, put the dried seaweed and curry puffs away, because it’s time for a SNACK.
Here are 10 facts about SNACK Investment, the investment platform that’s changing the investment game.
What is SNACK?
We all know what snacks are, of course (maybe a little too well), but have you heard of SNACK?
Developed by NTUC Income, SNACK is a mobile app that allows you to build your insurance coverage and investments a little at a time.
While some users might know it for its “stackable” insurance initiative, SNACK has recently launched SNACK Investment, where users can build their investment portfolio through bite-sized premium contributions.
The Industry’s First Micro ILP
When it was launched on 16 Sep, SNACK Investment was touted as the industry’s first micro investment-linked plan (ILP).
ILPs are known to offer a benefit called a cash value, which comes from the premiums that are used to purchase units in selected funds for investment. This amount is accumulated over time as you make more contributions.
Similar to its insurance package, SNACK Investment offers a stackable investment opportunity where users can slowly grow their investment portfolio through small contributions as they go about their day.
You Can Invest as Little as $1 at a Time
In this instance, saying “investing is as easy as 1,2,3” isn’t a stretch.
Unlike some wealth managers or even robo-advisors that require a hefty minimum investment fee, you can start your investing journey on SNACK Investment for just $1.
Yes, instead of getting that $1 hot dog from IKEA (yes, I know it’s tasty), why not go for a SNACK that can help build your investment portfolio instead? In the future, you might even have your own IKEA.
You Can Make an Investment Through Everyday Activities Like Taking the MRT
Time is money, as they say, and having to manually make contributions to your investment portfolio can be a chore.
With SNACK Investment, however, you will be investing while going about your daily activities.
See, your desired micro premiums (from $1 to $10) can be tagged to your selected lifestyle activities, such as taking public transport, or buying fried chicken from KFC.
Once you do this, the specified amount will be transferred to SNACK Investment every time you take the bus or train or buy that delicious fried chicken, meaning you’re literally building your wealth while gorging on chicken.
And over time you might forget all about it, which is a good thing: imagine forgetting that you’ve burned extra calories. Isn’t that the best of both worlds?
Your Investments Will Be Used to Purchase Units of the Asian Income Fund
At the start of each week, the funds you’ve set aside for investing will be used to purchase units of a fund selected by SNACK Investment.
At the moment, that fund is the Asian Income Fund, which invests primarily in Asian equities – including real estate investment trusts – and Asian fixed income securities.
It Can Be a Good Starting Point for First-time Investors
Since SNACK Investment will choose which funds you’ll be investing your money in (soon, you’ll be able to select the funds when you have a higher balance), SNACK Investment can be a good starting point for first-time investors, as beginners typically don’t know where to start.
And by letting people open their investment portfolios with just $1, SNACK lowers the barrier to entry.
Also, you’re automatically investing when you buy a Happy Meal from McDonald’s. Nothing shouts “beginner” as loudly as that.
It Allows You to Make Use of Dollar Cost Averaging
For those who don’t know, there are two main ways to make an investment.
You could go for Dollar Cost Averaging (DCA), where you invest small amounts of your money at certain intervals over the course of time.
Conversely, lump-sum investing involves taking all of the money you have available to invest at that moment and investing it all at once.
The advantage of the DCA method is that it reduces the impact of volatility in the market, so you don’t end up putting in a lump sum when the market is down. It also takes the emotional component out of your decision-making.
SNACK Investment allows you to use the DCA method, as you’re investing the same, small amounts every time you engage in your daily activities.
There’s an Auto-Invest Option
Reader: Wait, but what happens if I’m quarantined one week and can’t go out? My investments won’t go through because I’m not buying my fried chicken or taking the train.
Ah, I’m glad you asked, dear reader.
The SNACK app also has an “auto-invest” option for any remaining amount at the end of the week.
Here’s an example: let’s say you decide to invest $1 every time you eat fried chicken at KFC – which, concerningly, is three times a day – you would invest $3 every day, making it a total of $21 a week, right?
But maybe one week you only eat fried chicken three times a week, meaning you only invested $9 of the $21 you meant to invest for the week.
If you enabled the auto-invest option, however, the remaining $12 would be invested automatically at the end of the week.
(If you’re having fried chicken three times a week, you might want to invest in a healthier lifestyle as well).
You Can Withdraw Your Funds At Any Time
With some investment plans, your funds are locked in for a certain period of time, meaning you won’t be able to withdraw it even in case of an emergency.
Fortunately, this isn’t the case with SNACK Investment; yes, you can withdraw your funds at any time, as you wish.
Speaking of which…
There are No Additional Charges For Transactions
Unlike some investment platforms, there are no additional fees or charges for making investments and making withdrawals in SNACK.
After all, what’s the point of saving up your money for investments if a portion of it is going to go to waste?
Reader: Exactly, think of all that fried chicken I could have bought with it
I really think you have a problem with chicken, dear reader.
Think SNACK Investment is the right investment platform for you? Well, all you have to do is head to the Google Play Store or Apple App Store to start your investing journey now.
Remember, all you need is $1.
Reader: And an obsessive need to have fried chicken every day
That is completely optional.
You can also get complimentary $50 credits in your portfolio if you start your SNACK Investment before 30 November. Click here for more information.
Now, you’re ready.
Investments are subject to investment risks including the possible loss of the principal amount invested. Past performance, as well as the prediction, projection or forecast on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of the ILP sub-fund. The performance of the ILP sub-fund is not guaranteed and the value of the units in the ILP sub-fund and the income accruing to the units, if any, may fall or rise. A product summary and product highlights sheet(s) relating to the ILP sub-fund are available online at www.income.com.sg/funds. A potential investor should read the product summary and product highlights sheet(s) before deciding whether to subscribe for units in the ILP sub-fund.
All opinions expressed in this article are solely those of Goodyfeed and do not reflect the opinions of Income Insurance Limited (“Income”). Income is not responsible nor liable to any party in any manner whatsoever for such opinions, and Goodyfeed is solely responsible for any opinion and the accuracy and completeness of any information and intellectual property used in this article. The information contained in this article pertaining to any insurance product or plan is provided and meant for general information only and do not constitute an offer, recommendation, solicitation or advice by Income or Goodyfeed to buy or sell any product(s), plan(s) or investment product(s). It is not and should not be relied on as financial advice and has no regards for any person’s investment and financial needs. If you are unsure whether this product or plan is suitable for you, you may seek personalised financial advice from a qualified insurance advisor. Otherwise, you may end up buying a product or plan that does not meet your expectations or needs. As a result, you may not be able to afford the premiums or get the insurance protection you want. Precise terms, conditions and exclusions of the product are found in the policy contract.
For customised advice to suit your specific needs, consult an Income insurance advisor.
Protected up to specified limits by SDIC (applicable for Income products that fall under the Policy Owners’ Protection Scheme).
This advertisement has not been reviewed by the Monetary Authority of Singapore.
Information is correct as at 4 October 2022.
This article was first published on Goody Feed and written in collaboration with SNACK By Income.