WHAT ARE THE Rewards?
Experts believe that the SDRs have made it easier for Singaporean traders to get exposure to foreign shares in public.
Given how few websites offer access to buying in Thai stocks, Mr. Wong said, this is especially the case for Thai SDRs.
Additionally, Ms. Lee said that because investments are made in Sing dollars and through local brokerages, they save on international exchange losses and fees.
The biggest distinguishing factor in the case of the Hong Kong SDRs is that investors can access more businesses there with less money, according to Mr. Amir Hamzah Abdul Razak, chairman of investment advice at iFAST Global Markets.
For instance, given BYD’s trading price of HK$ 258.2 as of Jan 2, an investor buying the actual shares would have to put in around S$ 22, 605 ( US$ 16, 600 ) for the minimum board lot size of 500 shares.
However, to qualify as the BYD SDR’s minimum investment, an investment would only need to fork out about S$ 455. The panel lots of 100 units are traded in board lots. About 2 % of the initial investment required to invest in Hong Kong investment is made up of this.
According to Mr. Wong,” While it wouldn’t have been hard for an investment in the past to get into Hong Kong stocks, this has successfully lowered the minimum purchase price so that investors can access some of these companies in a bite-sized way.”
WHAT Would INSERTORS NEED TO BEAWARD?
Buyers should take into account their danger taste, investment goals, and investment preferences in addition to conducting their own research to understand the businesses they are investing in, just like they do with all opportunities.
For instance, the Thai SDRs represent a wider range of industries, ranging from hospitality, economic, oil and gas to consumer goods. Collectively, they make up more than 40 per cent of the standard SET50 Index, which tracks the amount actions of the top 50 companies listed on the Thai business.
However, according to Mr. Amir, it is one that the majority of local buyers are not as familiar with as various markets.  ,