Singapore retail investors are a strange breed. They will shy away from traditional funds,
citing risk, or other excuses, but they will sink their money into all manner
of counters based on herd mentality, and greed.
As long as someone promises a fantastic return, they put money in places
they could never hope to see a return.
The dichotomy of Singapore as a financial centre is that while the system is world class, Singaporean investors and entrepreneurs are behind the curve on investments, risk management, and tax exposure. It is one thing to buy a financial product. It is another thing, altogether, to be able to structure it as part of a portfolio.
In this case, I am not a fan of such a crowdfunding platform
because these platforms have no real fiduciary responsibility. They are mere matchmakers. The funds are not captured anywhere, such as
in a trust structure. This means
defaults and failures in the process leave investors with no money, and no
recourse.
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