Investing is like gardening in many ways. You need to create a diverse portfolio, your very own garden with various flora. It requires much patience and a long-term perspective for your investments to bloom.
Then there are expert gardeners, what many call horticulturists. These are individuals with more than just green thumbs, but have some expertise in plant health and growth. In the world of investments, the equivalent is an Accredited Investor (AI), someone who has access to a greater variety of investment products that are typically not available to retail investors.
Becoming an AI is an opt-in process which would give you a wide range of benefits. Nonetheless, there are also some limitations it may bring, as an expanded horizon means AIs need to exercise greater vigilance and tender care over their flowering investments.
Being an AI gives access to investment products that are not available to retail investors, providing the opportunity to diversify one’s portfolio. Examples include equity-linked notes, investment grade corporate bonds, and structured products
These alternative investment products and regulations allow you to continue investing, whatever the market condition. This is the key difference between being onboarded as an Accredited Investor compared to a Retail Investor. For example, DBS offers Accredited Investors access to DBS in-house strategies and product solutions such as the DBS I.D.E.A fund and the DBS CIO Barbell Note.
Similarly to having appropriate gardening materials for different soil conditions, being an Accredited Investor gives you access to restricted investments that allow you to invest, whether you’re facing a bull market, a bear market, or other market conditions.
That’s because Accredited Investors are considered to be sophisticated investors who are better informed and able to access resources to protect their own interests, and thus require less regulatory protection.
Such investors will therefore not be afforded the same level of regulatory safeguards as non-Accredited Investors, in exchange for access to more sophisticated investments. For instance, being able to invest more quickly in a new product when product manufacturers are exempted from producing an accompanied prospectus.
Some investors will however decide that they do not want to be considered as an Accredited Investor. There are two common reasons for this:
- They may have less exposure to the more-sophisticated types of investment solutions that are offered to Accredited Investors. It is natural tendency to avoid the unfamiliar.
- They may not have access to information to gain greater understanding of sophisticated investment products.
If you are interested in sophisticated investment products, there are certain criteria you’ll need to meet to qualify as an Accredited Investor. According to the Monetary Authority of Singapore (MAS) Accredited Investors need to have at least one of these:
- Minimum income of S$300,000 in the last 12 months (or its equivalent in a foreign currency); or
- Net personal assets exceeding S$2 million, of which the net value of your primary place of residence can only contribute up to S$1 million; or
- Net financial assets exceeding S$1 million (or its equivalent in a foreign currency); or
- Hold a joint account with an Accredited Investor, in respect of dealings through that joint account.
DBS Treasures is open to Accredited Investors with S$350,000 in investible assets. Just approach us to opt-in and get started.
Investing is a numbers game, and every investor needs to do their due research, review reports, analyse and understand the various investment products they are interested in.
As an Accredited Investor, just like how you would have access to restricted investments that are not available to retail investors, you would also have more opportunities to tap on expert advice and support to strengthen your investment advisory circle.
For example, with DBS Treasures, Accredited Investors have access to a dedicated Relationship Manager and an Investment Counsellor. These experts can explain the investment and risks involved, review your investment portfolio and select investment solutions to grow your wealth.
In addition, you will also have a powerful investment tool at your fingertips. With DBS Treasures’ Wealth Management Account, you get clear records of all your trading transactions and balances. Plus, it seamlessly connects your banking account and your investment account for ease of funds transfer, allowing you to track all your assets at a glance. The smart app’s in-built multi-currency feature also makes it hassle-free to invest in major foreign markets, and you can personalise your in-app portfolio and news feed to cater to your risk appetite and investment preferences.
Find out more about getting your Accredited Investor status by speaking to your Relationship Manager or contacting us. We can help you grow and manage your wealth with intelligent and timely market updates.
Accelerate your wealth with DBS Treasures today.
Disclaimers and Important Notice
This article is for information only and should not be relied upon as financial advice. Any views, opinions or recommendation expressed in this article does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability. This article is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation.
