Singapore Government Securities (SGS) bonds are often a go-to investment choice for Singaporeans due to their low-risk nature and the assurance of returns. In 2022, the rates on these bonds ranged from 0.5% to 4.4%, offering a seemingly steady investment. However, even these 'risk-free' investments carry hidden risks, the most significant of which is inflation.
In the world of personal finance, you've probably heard the phrase "high risk, high reward". But what does it really mean, and how does it apply to you as a busy professional? Should you therefore avoid all investment opportunities with high returns because they are riskier and can lead you to financial ruins?