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While these options safeguard your capital, they may not be insured by institutions like the Singapore Deposit Insurance Corporation (SDIC). Cash management accounts and innovative platforms may offer higher yields but come with greater risk and less protection. Always assess whether you’re comfortable with the risk and liquidity levels before choosing where to park your emergency fund.
3. Define Investment Goals and Risk Appetite
Understanding your financial objectives and how much risk you’re willing to accept is fundamental before diving into investments. Your time horizon influences your investment choices—longer durations generally allow for higher risk-taking since markets tend to grow over time.
Guidelines based on investment timeframe: