A SPANISH proverb says: 'A horse is worth more than riches.'

And when it comes to the sport of kings, horse racing, there is no doubt these mighty steeds are capable of running up good returns for some owners.

Take Why Be - Singapore's Horse Of The Year in 2006. He cost a mere $26,000, but has already bagged more than $1.7 million in winnings. Or Guy Of Warwick, which cost A$65,000 (S$82,608) but has won about $200,000 in stake money.

Or the 62 horses under top Kranji trainer Laurie Laxon's charge. Upkeeping them is not cheap as training each horse costs $2,400 a month - that is about $1.79 million a year for all 62. But between them, they have earned a whopping $8 million in prize money this year alone.

And it is not just about dollar rewards.

Said Mr Tang Weng Fei, who has owned horses for 22 years: 'The thrill of winning is huge, especially if there's a prestigious race. That feeling of ecstasy cannot be quantified.'

Owners in Singapore typically get most of their financial returns via prize purses, which amount to more than $50 million for the 680 races run here each year. Winnings are paid to owners if their four-legged charges finish in the top six.

Champion horses may also go on to compete in prestigious races overseas for even bigger stakes or retire to stud farms where they will generate fees from their breeding value.

Despite all the financial and emotional thrills, there are also plenty of potential spills. Neigh-sayers will warn that investing in horses carries higher risks than more conventional investment options.

Said owner Sam Owen: 'Say you own a bad stock, bad property, a bad horse - the bad horse you can't sell. It has zero value.'

Mr Tang warned: 'It's more unpredictable than buying stocks, which you can buy on fundamentals and get dividends. Anything can happen in a race.'

Horror tales abound of horses breaking down moments into a race. Owners may have little choice but to have the horse put down if it breaks a leg, for instance. And that ends the investment.

Some steeds do not even see a single race because they are injured in training or succumb to illness. For example, Mr Tang had a $300,000 horse which died of colic before it started competing.

Both owners and industry experts say the prospects of making an overall profit are slim due to the high risks. That means some view it more as a hobby than as an investment, aiming just to recover maintenance and training bills.

Said Singapore Turf Club's senior vice-president for racing, Mr Soong Tze Ming: 'Most owners will not be able to recover the capital cost of buying the horses... What they can hope for is that their horses will pay off their $30,000 annual maintenance costs through races.'

He said there are 800 local and expatriate owners, and slightly more than 950 horses stabled at Kranji. He added that the typical owner is 'male, in his late 30s to early 50s, successful and wealthy'.

All Singapore residents and non-residents can own racehorses here, with no limit on the number. To be a horse owner, a person must be over 21 years of age and must not be bankrupt. He should not have a criminal record and should not have been disqualified by any turf club.

For those who do not have big sums to spare, syndicates - or groups of individuals who share the cost of ownership - might be a better bet, as they enable investors to share the high risks.

Mr Larry Foley, an industry veteran, was roped in by the Turf Club seven years ago to look into boosting ownership numbers in Singapore.

He set up STC Racing Management, a subsidiary of the club, five years ago. Since then, about 100 new owners have entered the sport, attracted by the three racing trusts offered by the company.

Each trust offers 50 owners a share of a group of four to five horses for a one-time fee of $14,500 each for a period of three years - the average high-level competitive lifespan of a racehorse.

Mr Foley said: 'It's a hassle-free way for novices or first-time owners to experience horse ownership because all the costs are included in the payment.'

How does one buy a good horse? Having a reputable agent and a successful trainer is key. Generally, focus on breeding, as a winning pedigree ensures a higher chance of success. Physical attributes such as a good build, proportion and health are also important.

While there is potential for profit, that should not be the main motive. Said Mr Owen: 'You have to do it because you enjoy racing... the whole experience.'

Owners also said the experience is more enjoyable without the addiction of gambling. As American comedian Will Rogers once said: 'You know horses are smarter than people. You never heard of a horse going broke betting on people.'

Singapore ahead of the region's racing pack

THE financial returns on horse ownership in Singapore are among the best in the region.
According to the Singapore Turf Club (STC), the ratio of prize money on offer against the operating costs is better than for other established horse-racing venues such as Hong Kong.

Said STC senior vice-president for racing Soong Tze Ming: 'The ratio of prize money offered against the maintenance and training expenses in Singapore is 1.4 compared to 1.1 in Hong Kong, 0.7 in Japan, 0.5 in Australia and 0.4 in Malaysia.'

That means there is about $1,400 of prize money on offer in Singapore for every $1,000 of training and maintenance bills incurred. This excludes the initial cost of buying a horse.

Mr Soong said about 40 per cent of horses in Singapore are able to pay for their annual maintenance bill of about $30,000 through races.

Besides cost-cutting incentives, he also noted that a horse here typically races once a fortnight, or more than 20 times a year. In some countries, horses race only about 10 times annually.

'The more the horse races, the better the returns for the owners.'

To keep training bills down, the Turf Club offers a credit rebate of $750 to owners of Singapore-based horses if they do not win or they end up last in a race of 10 or fewer race starters. The rebate is also given if the horse does not win or finish in the bottom two in a race of 11 or more starters.