TIPS investing

[lukelow]

Hi,

Do anyone know where we can purchase treasury inflation protected securities (TIPS) in Singapore? its behave like bonds but increase in principal value as inflation increases. if inflation drops, the principal value also drops (if no QE II, III IV maybe that will happen)

I have tried going through fundsupermart to see if they got any TIPS but seems that SG market do not have it. It will sit well with a portion of my investable going to TIPS while the rest goes to stock investing. That is investable amount and not to be taken from saving for rainy days.

[Dennis Ng]

Hi,

Do anyone know where we can purchase treasury inflation protected securities (TIPS) in Singapore? its behave like bonds but increase in principal value as inflation increases. if inflation drops, the principal value also drops (if no QE II, III IV maybe that will happen)

I have tried going through fundsupermart to see if they got any TIPS but seems that SG market do not have it. It will sit well with a portion of my investable going to TIPS while the rest goes to stock investing. That is investable amount and not to be taken from saving for rainy days.

Just remember that there is no free lunch. Thus, you actually end up "paying" for the inflation adjustment provided.

Last 2 years, my total returns from my stock portfolio is about 50%, and definitely more than sufficient to cover inflation.

[lukelow]

Hi Dennis,

My thinking is after the rally, we will see the crash. So this is more to allow some earnings during the crash.

I take it as what a bond investor will do during 2007 when interest rate was high and no one is buying bonds.

I have never invested during a bear market before so my experience is very limited on this.