What happens
when you put it
in a savings account
with a 1% interest?

Put that money into a savings account that earns you a 1% interest and you’ll have a whopping $153,580 in your account after 35 years. This means that if you’re 21 right now, putting aside an amount that won’t be getting you eggs benedict will give you more than $150k by the time you hit 56. That’s very little effort for a lot of money.

Not too keen on risk?

What if you invested
that same amount
in the stock market?

The Nikko AM Singapore® Straits Times Index ETF has given returns of approximately 11.24% since 2009, up till the end of February 2017. Based on this, if you had invested $3,650 in the Singapore Stock Market through the STI-ETF annually for the next 35 years, that would potentially generate a total amount of $1,466,748. Yup, you read right - $1,466,748.

Type Savings Account The Nikko AM Singapore Straits Times Index ETF
Rates 1% 11.24%*
Total Amount $153,580 $1,466,748

© 2017 Morningstar. All Rights Reserved., Bloomberg & Nikko Asset Management Asia Limited as of 28 Feb 2017
Note that the example above does not take into account inflation.

*Past performance of the scheme is not necessarily indicative of the future performance of the scheme.

So there you have it.

The power of compounding. Now all you need to do is start saving, and let your money do the rest.

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