Starting an investment company in SG

[FFNow]

My friend is looking to start-up an investment company in Singapore. He wants to know what is needed for to start off such a company? What are the things to look out for and the regulations involved, etc? Hopefully, any current or ex-fund managers can shed some light on this? You can PM me too. Thanks!

[arthur]

Sorry, one thing I don't kinda understand.

If your friend is looking to start up one, he/she would have the connections and experience to have the know-how of starting one right?
Anyway, my memory also tells me this question was raised during the Yr 2006- 2007 in the old Wallstraits forum.

Not a good sign, no offence.

PS: I think the regulations could be found within MAS. $5M deposit? That was then. Not sure now.

Cheers.

[FFNow]

Sorry, one thing I don't kinda understand.

If your friend is looking to start up one, he/she would have the connections and experience to have the know-how of starting one right?
Anyway, my memory also tells me this question was raised during the Yr 2006- 2007 in the old Wallstraits forum.

Not a good sign, no offence.

PS: I think the regulations could be found within MAS. $5M deposit? That was then. Not sure now.

Cheers.

He hasn't started one before so he doesn't know. May I know what do you mean by "not a good sign"?

[newborn1000]

The regulations depends on whether you are looking for "sophisticated" investors <------Hedge funds, easier to setup, but the investors need 300k capital

or

retail investors<------tons of rules, most likely, will not be approved if you are not DBS, OCBC etc
(For protection of public)

[Musicwhiz]

He hasn't started one before so he doesn't know. May I know what do you mean by "not a good sign"?

I have the impression Arthur says it is "not a good sign" because he is likening the phenomenon to the bull market of 2006-2007. Recall that during runaway bull markets, many people rush to start investment companies and funds to capitalize on the madness of crowds, and so the increased interest being expressed by people in setting up an investment fund may be a hint of things to come........

[arthur]

I have the impression Arthur says it is "not a good sign" because he is likening the phenomenon to the bull market of 2006-2007. Recall that during runaway bull markets, many people rush to start investment companies and funds to capitalize on the madness of crowds, and so the increased interest being expressed by people in setting up an investment fund may be a hint of things to come........

You got me right in the head MW.

I was reluctant to reply bcos I am afraid some ppl might take offence to my answer. (Not pointing particularly to taka666 in any ways).
Anyway, its a sentiment thingy, and not really in value investment category.

But it ticks for me during the last recession so why fix a thing if it aint broken?

[kazukirai]

I think it's pretty hard for human behaviour to change.
If fact that's probably why we have all the Value Investing metrics and principles and what-nots- One, to identify when the crowds are getting mad and Two, to prevent oneself from joining that same crowd.

[Zelphon]

So now we see 1 guy talking about starting investment firm...

Do we see an illogical euphoria in the market ?
Most stocks still below their peak value in 2007..

When should be we sell all equities and stay 100% cash ?

[FFNow]

I think it's pretty hard for human behaviour to change.
If fact that's probably why we have all the Value Investing metrics and principles and what-nots- One, to identify when the crowds are getting mad and Two, to prevent oneself from joining that same crowd.

Since human behaviour doesn't change, it gives a great opportunity for value investors like us..

[Musicwhiz]

When should be we sell all equities and stay 100% cash ?

This is a pretty personal choice, I would say. As long as you feel the growth story is intact for the company in which you hold shares, you are obliged to continue holding it and following the story (i.e. Lynch's method). On the other hand, you could employ Graham's method to compute if a company is overvalued based on quantitative metrics, to determine an objective selling point. Yet others may want to use a Buffett/Munger approach and employ a multi-disciplinary framework of qualitative and quantitative factors to estimate intrinsic value; and to sell if the share price exceeds this intrinsic value by X%.

So to sum up, there is no one "right" method. It depends on one's comfort level and assessment of valuation/prospects.