In Aug 2015, DrWealth published that it will be launching an automated investing service (here). I remember that there was a DrWealth booth at one of those investor fair. Investment blog, Turtle investor, by Kevin Ling also mentioned it here.
However, it is has been about 9 months since the Aug 2015 announcement but still no news or updates about it.
Anyone knows what is happening?
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.
There are a lot of people who wants to invest, but do not know how to start their investment. I personally think that the best way to start to learn is to read investment books and online forums and there are many investing strategies, value investing, dividend investing, dollar-cost averaging. This is confusing for many people, myself included. And how does one really start?
For myself, I cannot commit a huge amount of money at one go and am not experienced in analysis. Therefore, I think dollar-cost-averaging (DCA) is a good way to start off. One of the key factor for DCA is to find a broker which has the lowest commission. But most of the brokers in Singapore has a minimum charge per trade, usually S$25, and this will add up to a huge costs.
From my research, there are 3 ways for Singapore investors to do DCA.
i. OCBC’s Blue Chip Investor Plan (link) – 19 blue chip counters & 1 ETF (Nikko AM STI ETF)
ii. Philips Capital’s Share Builders Plan (link) – 20 counters
iii. POSB’s Invest-Saver (link) – 1 ETF (Nikko AM STI ETF)
My DCA method
Personally I like blue chip counters and the Nikko AM ETF. Blue chip counters have strong fundamentals and will grow steadily under a good management team. For blue chip DCA, I will be using the OCBC Blue Chip Investor Plan as it has lower fees than Philips Capital. Furthermore, I have a few OCBC bank accounts which makes it easier for me to manage. I believe this will allow me to own blue chip counters at a lower cost slowly. (Eg, each lot of Keppel Corp costs more than S$10k as of my time of writing now). Furthermore, DCA will allow me to reduce my timing risk.
For the Nikko AM STI ETF, I will be using Standard Chartered’s equity trading platform (link). This is because each lot of Nikko AM STI ETF is 100 units and is more manageable and Standard Chartered’s fees is very low. So, I can purchase Nikko AM STI ETF whenever I want to.
Hopefully, with the above method, I will be able to build up a portfolio of blue chip counters and ETF over time.
Please feel free to comment on my above method.