Aug 27 2021

What are accredited investors?

Mariena Teo

Accredited investors are generally people with high net worth and/or a certain amount of income. They are allowed to make investments that are not registered with the authority. The guidelines for who may qualify as an accredited investor differ depending on the country.

Being an Accredited Investors in Singapore

In Singapore, accredited investors are people or corporations who meet the Monetary Authority of Singapore’s (MAS) criteria and have opted in with banks to be accredited investors. A summary of people or corporations who qualify to be a MAS accredited investor:

  1. Individuals with a personal net asset in excess of SGD 2 million (or the equivalent in another currency), with their primary residence contributing a maximum of SGD 1 million (or the equivalent in another currency)
  2. Individuals with an income of not less than SGD 300,000 (or the equivalent in another currency) in the past 12 months
  3. Corporations with net assets exceeding SGD10 million (or the equivalent in another currency) in value, in their most recent balance sheet
  4. Trustees of trusts that the MAS approves
  5. Persons that the MAS approves

See also: Why must I be an accredited investor to invest with Fraxtor?

Before opting in to be an accredited investor in Singapore, you should think of the pros and cons that come with this status:

ProsCons
Access to more investments
Higher yields
Portfolio diversification
High-risk investments
High minimum investments
Long capital lock-up period

While being an accredited investor does come with many benefits, you may not want to opt-in as one if:

  • You do not like taking risks
  • You are not good at managing finances

This is because accredited investors are thought to be financially savvy and are better informed. Investors who opt in to be treated as Accredited Investors will forgo the benefits of certain regulatory safeguards that protect them from being a target of phishing and other such scams.

Find out more from our FAQ section.

Do check out our blog for more Real Estate content.

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