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Is Tech Still One Of The Safest Places To Invest Your Money?

Published on 28 July 16
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Technology is important right across the globe, but it holds a special significance for Singapore. The press love to talk about the Little Red Dot becoming Southeast Asia’s Silicon Valley and, while that might be a nice headline-grabbing soundbite, it’s certainly true to say that policymakers would like to grab a greater slice of the money up for grabs in the tech sector.

Hotbed of investment
There has been a lot of money put into creating the right atmosphere for tech entrepreneurs in Singapore. The Technology Incubation Scheme, set up eight years ago, allows start-ups to search out investment of up to 85 per cent (with a maximum of S$500,000 per company).

While money alone won’t unearth the next Facebook or Google, it will certainly help the country’s best brains to have all the tools they need to thrive.

Not only that, Singapore boasts good infrastructure and links to universities in the UK – the sorts of things that make it the envy of regional rivals.

Potential of tech still not realized
So, if the Government thinks its worthy of investing, should you follow suit?

It certainly feels that, even with the advancements of the last few decades, there is plenty more to come from tech companies. There’s the race to perfect driverless cars, the scope for transformative use of the ‘internet of things’, the developments in virtual reality and wearable technology and the chance for a rush in consumer 3d printing.

The global market in driverless cars alone could be worth US$42 billion by 2025 alone.

All of that is not even considering the future growth potential of the innovations that currently exist. Take the recent acquisition of UK-based ARM Holdings, for example. Japan’s Softbank paid US$32 billion to take this jewel in the UK tech crown – a sizeable investment in a firm that makes microchips that are used in smartphones. This was clearly a sign of confidence in the smartphone sector, which still has scope for further growth.

Variety of investments
So does the current strength and scope for growth within the tech sector make it worth your while when it comes to investment?

Perhaps, but it is also worth thinking about the type of investment that you plan to make. Physical shares in individual companies could be volatile given the fast-paced nature of the market. The emergence of a disruptor could, almost overnight, knock a big tech firm off its perch and cause your portfolio to lose value. While there is reward there is risk in this sector.

Yet investors can also look to make money from the tech sector in other ways. Funds that search out ‘the next best thing’ on your behalf can be one smart way to make a more indirect investment in the technology of tomorrow, say.

Then there’s the option of CFD trading from IG, for example, which allows traders to make an investment based on the potential movement in a tech firm’s share price if they feel confident at spotting and capitalizing on the latest trends.

Technology is a growing influence on the lives of people across the globe and, as a result, it goes hand in hand with big money. That makes it something that every investor should consider – provided they have explored all of the options available to them and are mindful of the risks posed by changing tastes in a fast-paced market.
Technology is important right across the globe, but it holds a special significance for Singapore. The press love to talk about the Little Red Dot becoming Southeast Asia’s Silicon Valley and, while that might be a nice headline-grabbing soundbite, it’s certainly true to say that policymakers would like to grab a greater slice of the money up for grabs in the tech sector.

Hotbed of investment
There has been a lot of money put into creating the right atmosphere for tech entrepreneurs in Singapore. The Technology Incubation Scheme, set up eight years ago, allows start-ups to search out investment of up to 85 per cent (with a maximum of S$500,000 per company).

While money alone won’t unearth the next Facebook or Google, it will certainly help the country’s best brains to have all the tools they need to thrive.

Not only that, Singapore boasts good infrastructure and links to universities in the UK – the sorts of things that make it the envy of regional rivals.

Potential of tech still not realized
So, if the Government thinks its worthy of investing, should you follow suit?

It certainly feels that, even with the advancements of the last few decades, there is plenty more to come from tech companies. There’s the race to perfect driverless cars, the scope for transformative use of the ‘internet of things’, the developments in virtual reality and wearable technology and the chance for a rush in consumer 3d printing.

The global market in driverless cars alone could be worth US$42 billion by 2025 alone.

All of that is not even considering the future growth potential of the innovations that currently exist. Take the recent acquisition of UK-based ARM Holdings, for example. Japan’s Softbank paid US$32 billion to take this jewel in the UK tech crown – a sizeable investment in a firm that makes microchips that are used in smartphones. This was clearly a sign of confidence in the smartphone sector, which still has scope for further growth.

Variety of investments
So does the current strength and scope for growth within the tech sector make it worth your while when it comes to investment?

Perhaps, but it is also worth thinking about the type of investment that you plan to make. Physical shares in individual companies could be volatile given the fast-paced nature of the market. The emergence of a disruptor could, almost overnight, knock a big tech firm off its perch and cause your portfolio to lose value. While there is reward there is risk in this sector.

Yet investors can also look to make money from the tech sector in other ways. Funds that search out ‘the next best thing’ on your behalf can be one smart way to make a more indirect investment in the technology of tomorrow, say.

Then there’s the option of CFD trading from IG, for example, which allows traders to make an investment based on the potential movement in a tech firm’s share price if they feel confident at spotting and capitalizing on the latest trends.

Technology is a growing influence on the lives of people across the globe and, as a result, it goes hand in hand with big money. That makes it something that every investor should consider – provided they have explored all of the options available to them and are mindful of the risks posed by changing tastes in a fast-paced market.

This blog is listed under Development & Implementations Community

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