Investing is risky, but staying out of the market is a sure way to lose money to inflation: Syfe CEO

Syfe CEO Dhruv Arora warns that not investing is a sure way to lose money to inflation. For instance, $100 today may only be worth $98 a year later. While 2% may seem insignificant, this loss compounds over time, potentially reducing the purchasing power of nearly half of the money in two decades. Singapore currently holds $339 billion in idle cash across its banking system, much of which earns minimal base rates.

However, accessing higher yields often involves complex terms and unfamiliar financial mechanics. Building trust in digital finance infrastructure is crucial for people to feel comfortable keeping their liquidity productive. Syfe, a digital wealth management platform founded in 2019, has over 400,000 investors in three markets and $10 billion in assets under management in Singapore alone, with a 50% year-on-year increase.

To bridge the gap between savings and investing, Syfe aims to make invested cash instantly accessible, with current settlements in US, Hong Kong, and British markets taking one or two business days. Investors should understand the risks involved in moving savings to investments, as they will no longer be protected by Singapore Deposit Insurance Corporation insurance up to $100,000.

Staying invested can lead to faster recovery and growth, as shown during the Iran war when the S&P 500 fell less than 8% initially but recovered rapidly, ultimately gaining nearly 20% from its low.