In one of my earlier post (here), I was writing about how to start investing using the dollar-cost averaging method for blue chip stocks and ETFs. I also mentioned about my preference to purchase Nikko AM STI ETF manually using SCB’s online equities trading platform. In this post, actually slides, I will be presenting on the fees and the average unit cost price if one has been diligently investing monthly (ETF purchased at the end of each month) since Jan 2010 to Oct 2014 with various monthly budgets and various platforms. In addition, I also present to you a slide on the returns based of the total investment. (Source data from Yahoo Finance: here)
For my analysis, there are two regular savings plan (RSP), OCBC BCIP and POSB Invest Saver, which purchase shares and the third one is a manual investment via SCB online equities trading platform which purchases shares in lots.
My conclusion (edited on 11th Nov)
POSB Invest Saver (Regular Saving Plan) – Most expensive in terms of fees
OCBC BCIP (Regular Saving Plan) – In between
SCB equity online trading (manual) – Lowest fees.
While SCB equity online trading offers the lowest fees, RSP helps to take one’s emotion out of the equation which I feel is very important.
Please feel free to comment and also share other methods of index fund investing.