Last updated: March 2026 | Last verified: March 2026
Equity investments sit at the core of wealth creation, corporate finance, and portfolio management. From buying shares of a Singapore-listed company on the SGX to participating in an IPO or using equity-linked derivatives to protect a concentrated stock position, equity investments take many forms — and each carries distinct risk, return, and strategic characteristics. This article defines equity investments clearly, explains how they work across different structures, provides real-world examples, and covers what institutional and retail investors can expect from Singapore’s equity market in 2026 — including the full suite of equity investment solutions available through DBS Global Financial Markets (GFM).
Note: Equity investments carry market risk. The value of investments can fluctuate, falling as well as rising. Always consult a licensed financial advisor before making investment decisions.
Quick Summary
- Equity investments in one sentence: Equity investments involve buying an ownership stake in a company — directly through shares, or indirectly through funds, derivatives, or structured products — with the goal of generating capital gains and/or income through dividends
- Why do they matter: Singapore’s STI Index delivered a 19.4% price return in the first 11 months of 2025 — one of the strongest performances among developed Asian markets — with the combined market capitalisation of STI constituents rising from S$870 billion at end-2024 to S$1.1 trillion at end-2025
- How do they work: Investors provide capital to companies in exchange for ownership stakes; returns come from price appreciation, dividends, or both.
- Key types: Direct equity (shares), equity funds/ETFs, equity-linked derivatives, structured notes, and pre-IPO/private equity
- Singapore market momentum: 36 new listings on SGX in 2025 — the highest in a decade — with the SGX-Nasdaq dual-listing bridge expected to further boost 2026 listings
- Common confusion: Equity investments ≠ , debt investments; equities represent ownership and carry higher risk but also higher potential return compared to bonds or fixed deposits
Definition: What Are Equity Investments?
“Over the past five years, the STI Index has outperformed most major indices on a total return basis, highlighting the importance of both a strong currency and dividends that the Singapore equity market offers.” — Lion Global Investors, 2026 Singapore Market Outlook, February 2026 As of the end of 2025, the combined market capitalisation of STI Index constituents reached S$1.1 trillion — up more than S$200 billion from S$870 billion at the end of 2024 — reflecting the sustained re-rating of Singapore equities driven by policy support, strong corporate earnings, and renewed international investor interest. |
Why Does Equity Investments Matter?
Equity investments are the engine of long-term wealth creation — for individuals, institutions, and corporations alike. They also play a critical role in capital formation, allowing businesses to raise funding for growth without taking on debt.
Best suited for:
- Investors with a medium-to-long investment horizon (3+ years) seeking capital appreciation and dividend income
- Corporations and institutions managing treasury assets, concentrated stock positions, or exploring M&A financing through equity capital markets
- Wealth management clients seeking diversification beyond fixed income in a low-yield environment
- Companies looking to access public capital markets through IPOs or secondary offerings
Why Singapore’s equity market stands out in 2026?
- Policy tailwinds: MAS launched the SGD 5 billion Equity Market Development Programme (EQDP) in 2025, with SGD 3.95 billion already announced as of November 2025 — specifically targeting mid- and small-cap stocks to improve liquidity, research coverage, and listing attractiveness
- Record listings: SGX recorded 36 new listings in 2025 — the highest in a decade — driven by a streamlined listing process and the upcoming SGX-Nasdaq dual-listing bridge
- Retail participation surge: Retail participation in Singapore equities reached a three-year high in 2025, per SGX CEO Loh Boon Chye. Retail-driven ETF turnover rose 67% year-on-year in the first half of 2025
- IPO market revival: Singapore led Southeast Asia’s IPO landscape in 2025 with USD 1.6 billion raised in the first 10.5 months of the year — primarily driven by REIT listings
Not ideal when:
- An investor has a short time horizon (under 1 year) and cannot tolerate short-term volatility.
- Capital preservation is the primary goal, in which case fixed income or cash instruments are more appropriate.
- An investor is averse to mark-to-market losses on their portfolio during periods of market turbulence.
How Do Equity Investments Work?
Equity investments operate across four key structures — from the most straightforward (direct shares) to the most sophisticated (equity-linked derivatives and structured notes).
Concept 1: Direct Equity — Buying Shares
What is it? The most fundamental form of equity investment is purchasing shares of a listed or unlisted company directly.
How does it work?
- Input: Investor’s capital and investment thesis; brokerage account or direct placement channel
- Process: Shares are purchased on-exchange (e.g., SGX) via a broker like DBS Vickers, or off-exchange through private placements; investor becomes a registered shareholder with voting rights and entitlement to dividends
- Output: Investor holds shares that appreciate (or depreciate) in value over time; dividends are distributed from company profits; shares can be sold in the secondary market at any time during trading hours
Keynote: DBS GFM — formed in March 2024 by merging DBS Vickers (brokerage), DBS Digital Exchange (DDEX), and the treasury markets business — provides a unified platform for both institutional and retail equity access across listed and digital asset markets.
Concept 2: Equity Funds and ETFs
What is it? Pooled investment vehicles that provide diversified equity exposure across multiple companies, sectors, or geographies — managed actively (funds) or tracking an index passively (ETFs).
How does it work?
- Input: Investor contributes capital to the fund; fund manager deploys capital across a portfolio of equities
- Process: Fund manager selects stocks based on the fund’s mandate (e.g., Singapore equities, Asian growth, global technology); ETFs automatically replicate an index like the STI or iEdge Singapore Next 50
- Output: Investor gains proportional exposure to a diversified equity portfolio; returns reflect the aggregate performance of the underlying holdings minus management fees
Keynote: Retail-driven turnover in Singapore-listed ETFs rose approximately 67% year-on-year in the first half of 2025 — reflecting growing appetite for diversified, low-cost equity exposure. MAS also launched the iEdge Singapore Next 50 Indices in 2025 to broaden market participation beyond the STI’s top 30 constituents.
Concept 3: Equity-Linked Derivatives and Structured Notes
What is it? Sophisticated financial instruments that derive their value from underlying equities — used for hedging, capital protection, yield enhancement, or leveraged exposure.
How does it work?
- Input: Investor’s existing equity holdings, risk appetite, and investment objective (e.g., protecting a concentrated stock position, enhancing yield on a flat market view)
- Process: DBS GFM structures an equity-linked product — such as an equity option, equity-linked note (ELN), or accumulators — tailored to the investor’s specific position and market view; terms including strike price, tenor, and barrier levels are agreed upfront
- Output: Investor achieves the desired outcome — capital protection, enhanced yield, or leveraged upside — within pre-agreed risk parameters
Keynote: DBS GFM’s Equities-Linked Derivatives suite enables institutional and wealth clients to “protect capital while optimising potential returns on holdings and business options.” This is particularly relevant for corporate clients managing large, concentrated positions in their own or investee company stock.
Concept 4: IPOs, Private Placements, and Pre-IPO Equity
What is it? Access to equity investments at or before the point of a company’s public listing — typically offering higher potential returns in exchange for higher risk and lower liquidity.
How does it work?
- Input: Company’s capital needs and readiness for public markets; investor’s appetite for pre-IPO or primary market exposure
- Process: DBS Investment Banking leads or co-manages the IPO process — from pre-IPO investor search and bookbuilding to pricing and allocation; wealth clients may access pre-IPO allocations through DBS’s private banking and GFM platform
- Output: Investors receive shares at the IPO price; post-listing, shares trade freely on the exchange; pre-IPO investors typically benefit from a lower entry price than the IPO price
Keynote: DBS is the market leader in equity fund-raising in Singapore and has consistently topped SGX equity and REIT/Business Trust league tables. In February 2026, DBS partnered with Granite Asia to close a US$110 million AI-focused IPO fund — subscribed exclusively by DBS wealth clients — marking the first in a series of AI and tech-focused equity investments under the partnership.
Examples of Equity Investments in Practice
Example 1: Retail Investor Buying STI ETF
- Scenario: A Singapore-based professional wants exposure to Singapore’s top 30 listed companies with minimal effort and cost
- What happens: The investor purchases an STI ETF through DBS Vickers; the ETF automatically tracks the Straits Times Index, providing diversified exposure to Singapore’s largest listed companies, including DBS, OCBC, UOB, Singtel, and CapitaLand.
- Why is this an equity investment? Indirect equity ownership through a passive index-tracking fund
Example 2: HNWI Using Equity-Linked Derivatives
- Scenario: A high-net-worth individual holds SGD 10 million in a single Singapore bank stock and wants to protect against a market correction without selling
- What happens: DBS GFM structures a protective put option for the client, locking in a minimum sale price for the stock over the next 6 months while retaining upside participation.
- Why is this an equity investment? Use of equity-linked derivatives to manage risk on an existing equity position — a core DBS GFM equity solutions use case
Example 3: Singapore REIT IPO
- Scenario: A data centre operator lists a new REIT on the SGX to raise SGD 800 million from institutional and retail investors
- What happens: DBS Investment Banking leads the IPO bookbuild; institutional investors receive allocations during the bookbuild; retail investors apply through ATMs and online platforms during the public offer period.
- Why is this an equity investment? Primary market equity investment through an IPO — Singapore led Southeast Asia’s IPO market with USD 1.6 billion raised in 2025, primarily through REIT listings
Example 4: Corporate Accessing Pre-IPO Growth Capital
- Scenario: A Singapore-based AI startup needs growth capital ahead of a planned IPO in 18 months
- What happens: The startup accesses DBS’s partnership with Granite Asia, which provides both growth capital (via a private capital product) and end-to-end IPO preparation support through DBS Investment Banking
- Why is this an equity investment? Pre-IPO private equity investment, combining growth capital with a structured path to public markets
Common Misconceptions About Equity Investments
- Myth: Equity investing is only for the wealthy or financially sophisticated
Reality: Singapore’s retail equity participation reached a three-year high in 2025. Minimum investment amounts on SGX start from as low as 100 shares (one lot), and ETFs can be accessed from as little as SGD 100 through regular savings plans
- Myth: Singapore’s equity market is boring and dominated by banks and REITs
Reality: While banks and REITs remain core pillars, Singapore’s sector mix is actively evolving. MAS’s EQDP and GEMS Scheme are specifically designed to attract renewables, technology, logistics, and sustainability-focused listings — diversifying SGX’s industry profile through 2026 and beyond
- Myth: Equity investments always require long holding periods to generate returns
Reality: While long-term holding reduces timing risk, traders and institutions use equity-linked derivatives and structured notes to generate short-term income (e.g., yield enhancement through ELNs) on flat or mildly volatile market views
- Myth: DBS GFM only serves institutional clients for equity investments
Reality: DBS GFM — formed in March 2024 — integrates institutional, wealth management, and retail equity services under one platform, from DBS Vickers brokerage for retail clients to bespoke equity-linked derivatives and IPO access for institutional and HNWI clients
- Myth: Singapore equities underperformed global markets over the long term
Reality: Over the past five years, the STI Index outperformed most major global indices on a total return basis, benefiting from a strong SGD and above-average dividend yields. The STIs’ combined market capitalisation grew from S$870 billion to S$1.1 trillion in 2025 alone.
FAQs
What is the difference between equity and debt investments?
Equity investments represent ownership in a company — investors share in profits through dividends and benefit from capital appreciation but also bear the risk of loss. Debt investments (bonds, fixed deposits) represent lending — investors receive fixed interest payments regardless of the company’s performance, with a senior claim on assets in a default scenario. Equities carry higher risk and historically higher long-term returns than debt.
How has Singapore’s equity market performed in 2025 and into 2026?
The Straits Times Index (STI) delivered a 19.4% price return in the first 11 months of 2025 — one of the strongest performances among developed Asian markets. The combined STI market capitalisation grew from S$870 billion at end-2024 to S$1.1 trillion at end-2025. Heading into 2026, policy tailwinds (EQDP, GEMS Scheme, SGX-Nasdaq bridge), record listings, and rising retail participation support a constructive outlook.
What is the SGD 5 billion Equity Market Development Programme (EQDP)?
The EQDP is a MAS-led initiative launched in 2025 to revitalise Singapore’s equity market — specifically addressing weak liquidity in mid- and small-cap stocks, insufficient research coverage, and listing attractiveness. As of November 2025, SGD 3.95 billion of the SGD 5 billion programme had been announced, with mandated asset managers deploying capital into Singapore-listed equities.
What equity investment solutions does DBS GFM offer?
DBS GFM offers a comprehensive suite spanning direct equity access (via DBS Vickers brokerage), equity-linked derivatives (options, structured notes, ELNs), IPO and secondary offering participation, pre-IPO private equity access, and equity capital markets advisory. DBS is consistently ranked as the market leader in equity fund-raising and REIT/Business Trust transactions on the SGX.
What was DBS GFM before, and when was it formed?
DBS Global Financial Markets (GFM) was formed on 1 March 2024, through the merger of DBS’s equity capital markets division, DBS Vickers brokerage, the DBS Digital Exchange (DDEX), and the treasury markets business. GFM is headed by Andrew Ng and serves as DBS’s unified platform for all financial markets — equity, fixed income, FX, digital assets, and structured products.
Is it a good time to invest in Singapore equities in 2026?
Market analysts and fund managers heading into 2026 are broadly constructive on Singapore equities, citing the EQDP-driven liquidity improvement, SGX’s record listings pipeline, strong STI performance, and Singapore’s safe-haven currency appeal. Lion Global Investors (February 2026) notes Singapore “offers a rare combination of stability, yield and access to the next wave of regional growth.” As always, suitability depends on individual risk appetite and investment objectives.
References
- DBS Bank. Equity Investments and Innovative Solutions for Growth – DBS GFM. https://www.dbs.com.sg/global-financial-markets/equity-investments-and-solutions
- DBS Bank. Maximise Returns with DBS GFM’s Equity Investment Solutions. https://www.dbs.com.sg/global-financial-markets/equity-solutions
- DBS Bank. Access End-to-End Investment & Funding Solutions – DBS GFM Investment Banking. https://www.dbs.com.sg/global-financial-markets/investment-banking/
- Singapore Business Review. DBS Merges Brokerage, Digital Exchange with Treasury Markets Business. https://sbr.com.sg/news/dbs-merges-brokerage-digital-exchange-treasury-markets-business (Published: February 2024)
- Business Times. Singapore Equities Gain Traction into 2026. https://www.businesstimes.com.sg/wealth/wealth-investing/singapore-equities-gain-traction-2026 (Published: December 2025)
- Business Times. DBS Partners Granite Asia to Provide Capital, Financing for High-Growth Companies. https://www.businesstimes.com.sg/wealth/wealth-investing/dbs-partners-granite-asia-provide-capital-financing-high-growth-companies (Published: February 2026)
- Lion Global Investors. 2026 Singapore Market Outlook. https://www.lionglobalinvestors.com/en/insights/2026-singapore-market-outlook.html (Published: February 2026)
- Securities Investors Association Singapore (SIAS). Commentary – Singapore Stock Market: A Fruitful 2025, Plenty of Room for Optimism in 2026. https://sias.org.sg/latest-updates/commentary-singapore-stock-market-a-fruitful-2025-plenty-of-room-for-optimism-in-2026/ (Published: December 2025)
- Amova Asset Management. Singapore Equity Outlook 2026. https://nz.amova-am.com/docs/default-source/default-document-library/pdf/insights/2025/2511-singapore-equity-outlook.pdf (Published: November 2025)
- Yahoo Finance / IPO Watch. 2026 Singapore IPO Outlook: Top SGX Debuts and Market Trends. https://sg.finance.yahoo.com/news/2026-singapore-ipo-outlook-top-060000700.html (Published: January 2026)
- DBS Bank. 2026 Singapore Market Focus: Outlook and Strategy. (Published: December 2025)
- Reuters. DBS Partners with Granite Asia, Closes $110 Million AI IPO Fund for Wealth Clients. https://www.reuters.com/world/asia-pacific/dbs-partners-with-granite-asia-closes-110-million-ai-ipo-fund-wealth-clients-2026-02/ (Published: February 2026)