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Old 23-07-2013, 01:23 PM   #31
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1.5% still too high...

i only willing to pay less than 1% and Management Fee less than 1% p.a
I doubt if you read my post carefully. You only pay 1.5% for the initial amount not the subsequent monthly amount. Please do you own mathematics.
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Old 23-07-2013, 01:38 PM   #32
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I doubt if you read my post carefully. You only pay 1.5% for the initial amount not the subsequent monthly amount. Please do you own mathematics.
i am old. i like to be simple and easy.

don't like things so complex, too much calculation make me headache
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Old 23-07-2013, 01:55 PM   #33
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There is an alternative way for you to invest in STI at even cheaper cost than POSB Invest Saver:

DBS/POSB is offering unit trust regular saving plan (RSP) at 0% sales charge for the first $500 per month per fund. However Nikko AM Singapore STI ETF is not under the subscription list, so the closest one to subscribe is Nikko AM MyHome Fund - HomeGrowth, it's 80% in Nikko AM Singapore STI ETF and 20% in ABF Singapore Bond Index Fund.

http://www.dbs.com.sg/Resources/pers...homegrowth.pdf

Comparing two funds annual management fee, 0.5% vs 0.2%, still better than paying 1% sales charge.

How to do it:

Firstly, subscribe an minimal initial amount of $1000, the net sales charge is 1.5%
Secondly, setup the regular saving plan (RSP) to invest up to $500 per month into the fund, it will be 0% sales charge.

Everything can be completed via ibanking including future redemption, there is no redemption charges for DBS/POSB unit trust investments.

Although this promotion is subjectd to renewal once a year, DBS/POSB has been renewing it for the past 4 years as what I can recall.

If you don't like the 20% bond allocation, another alternative is Nikko AMSingapore Dividend Equity Fund, the fund has outperformed its benchmark STI Index consistently and paying monthly dividend at 5 to 7%p.a.

http://www.dbs.com.sg/Resources/pers..._sg_div_eq.pdf
Hi..,
can guide more detail how to:
Firstly, subscribe an minimal initial amount of $1000.
example: what to subscribe?
Secondly, setup the regular saving plan (RSP) to invest up to $500 per month into the fund.
can i just walk-in to dbs and let them do for me for 1st time?
or what i should tell them about that 2 thing?

hope with detail step by step, other beginner can know better too.
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Old 23-07-2013, 02:20 PM   #34
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Hi..,
can guide more detail how to:
Firstly, subscribe an minimal initial amount of $1000.
example: what to subscribe?
Secondly, setup the regular saving plan (RSP) to invest up to $500 per month into the fund.
can i just walk-in to dbs and let them do for me for 1st time?
or what i should tell them about that 2 thing?

hope with detail step by step, other beginner can know better too.
Step 1: Login your DBS/POSB ibanking -> Investment & Trading -> Unit Trust Purchase -> Cash Purchase -> Select fund manager (Nikko AM) -> Select the fund name -> Submit -> Confirm
Step 2: Login your DBS/POSB ibanking -> Investment & Trading -> Unit Trust Regular Savings Plan -> Setup/Update Regular Savings Plan -> Select the fund name -> Submit -> Confirm

Don't walk in branches as 1.5% sales charge is only applicable via ibanking.
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Old 23-07-2013, 03:14 PM   #35
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Step 1: Login your DBS/POSB ibanking -> Investment & Trading -> Unit Trust Purchase -> Cash Purchase -> Select fund manager (Nikko AM) -> Select the fund name -> Submit -> Confirm
Step 2: Login your DBS/POSB ibanking -> Investment & Trading -> Unit Trust Regular Savings Plan -> Setup/Update Regular Savings Plan -> Select the fund name -> Submit -> Confirm

Don't walk in branches as 1.5% sales charge is only applicable via ibanking.
so 1.5% is for first transalction and each RSP also 1.5% or any min cost?
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Old 23-07-2013, 04:26 PM   #36
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so 1.5% is for first transalction and each RSP also 1.5% or any min cost?
If my understand is right. - "setup the regular saving plan (RSP) to invest up to $500 per month into the fund, it will be 0% sales charge."

You only pay 1.5% of 1k for initial (first) transaction. Subsequent RSP monthly purchase will be not have any sales charges as long as not >$500
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Old 23-07-2013, 04:34 PM   #37
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Poems also have Share Builders Plan similar like OCBC and POSB but cost more..
http://www.poems.com.sg/index.php?op...id=102&lang=en

i think have sales charges... if dont have it is very stupid...

dollarDEX Investments is An Aviva company also have RSP and VSP.

Regular savings plan (RSP)
https://www.dollardex.com/sg/index.c...vestUTrsp/home

Value averaging plan (VAP)
https://www.dollardex.com/sg/index.c...vestUTvsp/home


select Nikko AM


Poems also have RSP for UT
http://www.eunittrust.com.sg/RSPApproved.aspx

Last edited by steventay; 23-07-2013 at 04:37 PM..
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Old 23-07-2013, 04:52 PM   #38
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Fees

The sales charge is 1%, but in the FAQ it says, "The average subscription price is calculated by dividing the total cost of purchasing the shares of the Nikko AM Singapore STI ETF by the total quantity of shares purchased on that day by the Bank."

They didn't define the "total cost of purchasing the shares", but it is ambiguous enough such that they can include additional trading fees, clearing fees, GST, etc. in this figure. They can even include the cost of labour if they wanted to. If they are in fact doing this, then the 1% sales charge isn't the only fee the customer pays. The customer would effectively be paying all other fees by paying a higher per share price than the open market price.

We can only find out whether there are other fees when we compare the average subscription price to the market price on the day of purchase.
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Old 23-07-2013, 04:58 PM   #39
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The sales charge is 1%, but in the FAQ it says, "The average subscription price is calculated by dividing the total cost of purchasing the shares of the Nikko AM Singapore STI ETF by the total quantity of shares purchased on that day by the Bank."

They didn't define the "total cost of purchasing the shares", but it is ambiguous enough such that they can include additional trading fees, clearing fees, GST, etc. in this figure. They can even include the cost of labour if they wanted to. If they are in fact doing this, then the 1% sales charge isn't the only fee the customer pays. The customer would effectively be paying all other fees by paying a higher per share price than the open market price.

We can only find out whether there are other fees when we compare the average subscription price to the market price on the day of purchase.


the cheapest is to buy 1 lot Nikko AM Singapore STI ETF using SCB online trading as 1 lot cost $300++

SCB online trading comission is 0.2%
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Old 23-07-2013, 07:44 PM   #40
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yea, diy your own share builder.
buy thru scb.

don't forget these plans lag. u apply, they need time to process and buy for you.

a variant of unit trust so to speak. cut off this middleman food chain. buy nikko etf urself.






Mr Shiny, don't think shld sticky it.

Last edited by chopra; 23-07-2013 at 07:47 PM..
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Old 23-07-2013, 07:59 PM   #41
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You are basically paying POSB to help you buy STI ETF, you will end up paying the sales charge AND the management fees of STI ETF (yes there is a management fee, albeit a low one).

Totally pointless.
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Old 23-07-2013, 08:26 PM   #42
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You are basically paying POSB to help you buy STI ETF, you will end up paying the sales charge AND the management fees of STI ETF (yes there is a management fee, albeit a low one).

Totally pointless.
Obviously such regular savings plans are for people who want to commit to investing and to invest small amounts regularly. Of course they could just accumulate their savings and do it every 3 or 6 months, or whenever they believe that the market is at a low, but are you so sure that people would be better off trying to do that? Assuming they even want to do that. This is also for people with commitment issues or who know that they will shoot themselves in the foot by making bad predictions or trading. At least this way they can stay invested for the long run.

As for the STI ETF's management fee, seriously, can we expect retail investors to accumulate a portfolio of 30 blue chip stocks by themselves? We must look at what the alternatives are, not some hypothetical world where everything is free.

POEMS and OCBC's plans are too expensive but I consider POSB's reasonable. Even if you buy the ETF through a broker you have to pay commissions.
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Old 23-07-2013, 09:23 PM   #43
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If my understand is right. - "setup the regular saving plan (RSP) to invest up to $500 per month into the fund, it will be 0% sales charge."

You only pay 1.5% of 1k for initial (first) transaction. Subsequent RSP monthly purchase will be not have any sales charges as long as not >$500
Yes, you are right
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Old 23-07-2013, 09:56 PM   #44
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Step 1: Login your DBS/POSB ibanking -> Investment & Trading -> Unit Trust Purchase -> Cash Purchase -> Select fund manager (Nikko AM) -> Select the fund name -> Submit -> Confirm
Step 2: Login your DBS/POSB ibanking -> Investment & Trading -> Unit Trust Regular Savings Plan -> Setup/Update Regular Savings Plan -> Select the fund name -> Submit -> Confirm

Don't walk in branches as 1.5% sales charge is only applicable via ibanking.

Thanks for the tip. Just set this up. $500 every month RSP.
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Old 23-07-2013, 10:49 PM   #45
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There is an alternative way for you to invest in STI at even cheaper cost than POSB Invest Saver:

DBS/POSB is offering unit trust regular saving plan (RSP) at 0% sales charge for the first $500 per month per fund. However Nikko AM Singapore STI ETF is not under the subscription list, so the closest one to subscribe is Nikko AM MyHome Fund - HomeGrowth, it's 80% in Nikko AM Singapore STI ETF and 20% in ABF Singapore Bond Index Fund.
firstly, dont do this if you are planning to hold for very long term.

the introduced so called "cheaper" method has no sales charge but higher management fees. an additional of 0.3% of management fees compared to the PIS account.

the PIS one time sales charge of 1% will break even if you can hold for more than 3 years.

secondly, the underlyings of both fund are different. the homegrowth will probably have lower volatility but lower long term returns because of the bonds allocation.

in overall, both BCIP and PIS are recommended plans for the lower monthly amount.

for monthly investment amount of lets say 1k and above, i will still recommend the PSBP one.

and once again, let me iterate that such DCA plans are not easily replicable through a SCB trading account. the execution and experience are totally different. for someone who is looking for a plan that is an auto pilot and dont wish to monitor the market, these DCA plans are the recommended ones.
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