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High interest rates could help investors, but you can’t avoid taking risks

Yong Jun Yuan
Published Mon, Aug 7, 2023 · 05:00 AM
    • The US Federal Reserve and other central banks have raised interest rates at a rapid rate since February last year in a bid to lower the inflation rate.
    • The US Federal Reserve and other central banks have raised interest rates at a rapid rate since February last year in a bid to lower the inflation rate. PHOTO: REUTERS

    HIGHER interest rates are making fixed-income investments more attractive than they have been in years. Who doesn’t like the idea of making 3 per cent to 4 per cent without doing anything?

    First-time investors should take advantage of the higher rates to learn a little more about active portfolio management; but this should be a stepping stone to other kinds of higher-yielding investments.

    The 10-year Singapore Government Securities were paying 3.08 per cent per annum in June 2023.

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