How to invest in ETF and Indices

[racoon12]

Pick up this news....so I share

Why you should build wealth passively with POSB Invest-Saver
Posted: 23 Jul 2013 08:07 AM PDT
POSB provides a way to invest passively to build your wealth
This week POSB have released a rather good idea in the POSB Invest-Saver:
POSB has rolled out a regular savings plan for working Singaporeans over the age of 18 to build their retirement funds through investment.
With POSB Invest-Saver, savings and current account holders put a minimum of $100 a month into the Nikko AM Singapore STI ETF, an exchange traded fund managed by Nikko Asset Management Asia which last year paid a dividend of 2.1 per cent.
POSB account holders can sign up for the scheme online or at any of the 1,100 DBS/POSB automated teller machines island wide. A fixed amount can be invested monthly via GIRO.
DBS Bank’s managing director and group head, Tan Su Shan, said that the scheme "allows customers to take advantage of dollar cost averaging and save for their retirement in a smarter way without the need for a huge capital outlay".
http://www.posb.com.sg/personal/landing ... pid=vanity
http://www.posb.com.sg/personal/investm ... fault.page

[racoon12]

Pick up this news....so I share

Why you should build wealth passively with POSB Invest-Saver
Posted: 23 Jul 2013 08:07 AM PDT
POSB provides a way to invest passively to build your wealth
This week POSB have released a rather good idea in the POSB Invest-Saver:
POSB has rolled out a regular savings plan for working Singaporeans over the age of 18 to build their retirement funds through investment.
With POSB Invest-Saver, savings and current account holders put a minimum of $100 a month into the Nikko AM Singapore STI ETF, an exchange traded fund managed by Nikko Asset Management Asia which last year paid a dividend of 2.1 per cent.
POSB account holders can sign up for the scheme online or at any of the 1,100 DBS/POSB automated teller machines island wide. A fixed amount can be invested monthly via GIRO.
DBS Bank’s managing director and group head, Tan Su Shan, said that the scheme "allows customers to take advantage of dollar cost averaging and save for their retirement in a smarter way without the need for a huge capital outlay".
http://www.posb.com.sg/personal/landing ... pid=vanity
http://www.posb.com.sg/personal/investm ... fault.page

[racoon12]

Nikko STI ETF

Enter the exchange traded fund. Nikko STI ETF is a exchange traded fund listed on the Singapore Stock Exchange.

Basically, it is a listed unit trust that invest in a basket of stocks.

This basket of stocks is the blue chips listed on the STI Index, which is an index of the largest companies in Singapore.

With the STI ETF, it allows this group of people to purchase these blue chips in a single swoop.

The advantage here is that previously you need to use a unit trust to buy or that you need to spend a large amount of money to buy.

With the STI ETF, you can buy all these blue chips in a single swoop.

[cwe]

I saw the POSB invest-saver plan on the news as well and checked it out. I read on the website that we cannot sell partial amount. Not that I plan to do withdrawal, because this saver plan should be for long term. However, if there is any emergency, I would have to withdraw all the money. It is a little inflexible and troublesome. For example, if I only need to use a partial amount, I would have to think of alternative plan for the balance amount.

[alvin]

then go with poems share builder plan. you can sell less than 1 lot, but of course, the price won't be as good.

I saw the POSB invest-saver plan on the news as well and checked it out. I read on the website that we cannot sell partial amount. Not that I plan to do withdrawal, because this saver plan should be for long term. However, if there is any emergency, I would have to withdraw all the money. It is a little inflexible and troublesome. For example, if I only need to use a partial amount, I would have to think of alternative plan for the balance amount.

[Albert]

Please note that selling of SBP shares are subjected to normal broker charges of $40+ dollars. Not the $25+ which we are familiar for online trading, because it cannot be transacted by end user.

Therefore, it is not worth it to sell small amount.

I think the best solution is to use the OCBC blue chip investment plan, as you can sell partial lots subjected to $5 or 0.3% for each counter.

[alvin]

Yes, agree with Albert. OCBC is the cheapest so far charging at 0.3% but I am not sure how long it will last because OCBC stated it is promotional.
POSB charging at 1%.
Phillip charging at $6.42 for investments between $200 to $1,000 per month. In percentage, 0.645% to 3.21%.

Go for OCBC first.
If not, go for POEMS if you want to invest $642 and above per month.
Lastly, go for POSB.

Please note that selling of SBP shares are subjected to normal broker charges of $40+ dollars. Not the $25+ which we are familiar for online trading, because it cannot be transacted by end user.

Therefore, it is not worth it to sell small amount.

I think the best solution is to use the OCBC blue chip investment plan, as you can sell partial lots subjected to $5 or 0.3% for each counter.