Investment funds

A few days ago, my sister approached me asking if I coukd help her invest 50k in stocks.

The few questions I asked is what is your expected returns per year and how long can you hold the investment.

Initially she told me 20k a year. Immediately I rejected her telling her that her returns are not possible. I am no magician to be able to generate such returns year in year out.

Then she relented and said decent returns a year. I pondered over the weekend what kind of stocks would fit her as her holding period is only a few years.

Her expectations are different from mine. Oil and gas companies are out of the questions. Reits might require injection of funds which she wouldnt have. In the end i zoomed in on the telco.

Telco are stable companies. I checked the 3 telcos M1, Starhub and Singtel.

Of the 3, I could say confidently that Singtel is the biggest player and if i were to buy this stock myself, and if the stock market prices somehow were not available for the next 10 years, I would not be so worried. It also has stable dividend payouts.

I informed my sister whom in the end, did not want to invest in Singtel because she felt the dividends based on current prices, at 5% is too low.

I told her honestly this is the best I could find. If she wants an alternative, she could ask my elder sister for advice because my elder sis is an active investor. The discussion ended on this note.