STI Reserve List: From the bench to the benchmark

Exposure to the STI can give investors access to the stability and diversity of the index's component stocks, writes GEOFF HOWIE

BEGINNER investors are likely to be more familiar with the English Premier League than they are with their local stock market. In some ways, stock market indexes are very similar to professional league football clubs.

In most cases, they include many of the biggest and most high-profile players of the markets they represent.

And like some of the better-known football clubs (think Manchester United, Chelsea, Arsenal, Liverpool), stock market indexes have become household names in their own right, even among households with little or no knowledge of financial markets or football.

The Straits Times Index (STI), a composite benchmark comprising 30 of the largest stocks listed on Singapore Exchange (SGX),...

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