Blue Chip Investment Plan (BCIP) by OCBC

[Sinkie]

Anyway the above are just my personal intepretations for this OCBC Bluechip investment plan base on the term and conditions that i read base on the below pdf

http://www.ocbc.com/personal-banking/investments/bcip-terms-and-conditions.pdf

it may be wrongly or grossly misinterpreted by me so for more accurate details and intepretation, i advise and recommend to call ocbc Personal Banking at 1800 363 3333 (or +65 6363 3333 if you are calling from overseas)

dont flame me ahh..

but if you ask me will i use this plan? i would say i will use this plan using my CPF-OA or SRS but not with the cash option because at least i control the selling part (i can still sell with any brokerage account that i have linked up with my cpfis account)

 

[blade1982]

0.3% fee for buy/sell order sounds decent, but OCBC indicated that it was for limited time period only. Whether it's worthwhile or not in the long term depends on the "normal" rate of the fee and the sum that you can set aside for monthly investment.

 

[Sinkie]

0.3% fee for buy/sell order sounds decent, but OCBC indicated that it was for limited time period only. Whether it's worthwhile or not in the long term depends on the "normal" rate of the fee and the sum that you can set aside for monthly investment.

yeah agree, actually 0.3% for an offline/automated orders is cheap because typically offline orders are charged 0.48% - 0.5%

 

[slurpy0099]

0.3% fee for buy/sell order sounds decent, but OCBC indicated that it was for limited time period only. Whether it's worthwhile or not in the long term depends on the "normal" rate of the fee and the sum that you can set aside for monthly investment.

Exactly! Now they use cheap fee to entice us. Once we jump in we will be at their mercy of their normal rate. Rather consider poem as rate is transparent!

 

[klarklar]

for those who think they can DIY by dca with SCB, think again. i think its rubbish. the execution is different psychologically and emotionally. are you sure you are able to buy diligently on a monthly basis??? i think 99% will defer purchase if the stock market sentiment is bad. if sentiment is good, they will tend to buy more. so the execution is NOT perfect. and also the number of shares that can be purchase is another problem. you cant buy $500 worth of keppel corp shares!

It is a matter of discipline. If retail investors are willing to put up with the high cost and extra terms and conditions, then go for this OCBC plan. Otherwise, they can do it themselves by using SCB to buy the STI ETF themselves which is essentially the same thing at much cheaper cost.

Sinkie has done a very good job showing us the things to look out for in this plan by digging out the fine-print from OCBC website, not simply shooting their mouth on what they think is right or rubbish.

 

[iCuteCube]

I kind of like the idea of 0.3% sales comm, allow regular inflow of funds.

But now, not really interested, prefer the DW icrecream story at page #1.

Will strongly recommend this to my friends instead!

 

[Fattyboiboi]

This type of program, it will always be a consolidated order,

For example 1000 peoples may choose to buy starhub under this program, 1 people $100, so total $100,000 worth of orders, which will translate to 23,809 shares of starhub that is needed to be purchased assuming again that starhub is trading at $4.20 on that day.

so therefore 23,000 will be purchase from the boardlot market, and 809 shares could be bought from the oddlot market, or else they can buy 24,000 of starhub from the boardlot market, while they keep 191 shares for the next month.

or worst case assumption is maybe they have already owned 1,000,000 shares of starhub, they can also allocate (their risk) to you at the price reported on 22th of every month too.

so base on their FAQ, I dont think they will tell you what price they transacted for you, because end of the day everyone will get the same price that ocbc reports to you so they will report to you a random price that is transacted on the 22th of the month

so imo, since there is no price transparancy, for example there is also a possibility that if for example the shares of starhub trades between $4.00 and $4.20 on 22th of that month, ocbc can buy everything between $4 and $4.05 on that daybut they will report to you $4.17 or even $4.20 or they can slowly 'sell' you the shares they bought earlier and quote you a random price from the price transacted on that date.

or else they can also aggregrate the purchase orders and sales orders under this program then earn the spread + commission, and the shortfall from any side will be fulfilled from the market or from their own nominee or their own client transactions too.

8. How is the Average Purchase Price of the share determined?

On the Purchase Date, we aggregate the orders of all customers to purchase the shares. The Average Price is calculated by dividing the total cost of purchasing the shares by the total quantity of shares purchased. All customers who purchase the same share counter will be charged the same average purchase price.
--------------------------------------------------------------

Above is my assumptions

remember, the shares is still under their nominee and is up to them to play around

Thanks sinkie for the heads up. Good info there.

 

[iCuteCube]

Thanks Sinkie for the heads up.

I had also explained to my friend.

My reasoning:

#1 Since you are a small investor, of $100 per month, similarly to UT, this is a safer bet in a long term basics, say 10 to 20 years time, the YTD will normally be better.

#2 Since I had mentioned to my friend that he only invest a small portion of money, even there is a difference in the blue chip pricing on that day, it wont be great. The risk will be shared by all OCBC Clients of this program. Therefore there is nothing to be worried about.

#3 trouble-free, this OCBC will do all the sai kang for you, while you relax 1 corner. Of course there will be some disadvantages, however depending on individual, the advantage maybe much more , however at least not for me, i prefer everything able to do customization.

So truthfully speaking, i am still strongly recommending to my friends. It's better to introduce this, to lock them up, better than seeing them fall into some SCAM Scheme.

 

[Dividends Warrior]

prefer the DW icecream story at page #1.

I m glad u like my story.

 

[Dividends Warrior]

Thanks Sinkie for the heads up.

I had also explained to my friend.

My reasoning:

#1 Since you are a small investor, of $100 per month, similarly to UT, this is a safer bet in a long term basics, say 10 to 20 years time, the YTD will normally be better.

#2 Since I had mentioned to my friend that he only invest a small portion of money, even there is a difference in the blue chip pricing on that day, it wont be great. The risk will be shared by all OCBC Clients of this program. Therefore there is nothing to be worried about.

#3 trouble-free, this OCBC will do all the sai kang for you, while you relax 1 corner. Of course there will be some disadvantages, however depending on individual, the advantage maybe much more , however at least not for me, i prefer everything able to do customization.

So truthfully speaking, i am still strongly recommending to my friends. It's better to introduce this, to lock them up, better than seeing them fall into some SCAM Scheme.

You are a good friend.

 

[evolute8]

Bookmarked.

 

[exactmat]

Hi Guy,

Why recommend nikkoamsti 100 ?
Do nikkoam sti 100 pay Dividend ?

 

[littlegreenmen]

Prefer DIY ice cream but dunno where to start.

SCB= Standard Chartered Bank?

 

[Jonatutu]

I am very very new, this is mt first time going into shares/investment therefore would like to give this BCIP a try.

From what I understand from the chargeable fee, if I invest $100,my actual buying funds is $95. To get back my $100, shares need to increase by 5.3%? If I sell at the increase of 5.3% there would also be a $5 selling fee thats means I would be back at $95 again? Is my maths correct I have no idea how all these works

 

[w1rbelw1nd]

I am very very new, this is mt first time going into shares/investment therefore would like to give this BCIP a try.

From what I understand from the chargeable fee, if I invest $100,my actual buying funds is $95. To get back my $100, shares need to increase by 5.3%? If I sell at the increase of 5.3% there would also be a $5 selling fee thats means I would be back at $95 again? Is my maths correct I have no idea how all these works

You are right. Because of minimum charges, you will be paying at least $5, which means that your investment need to rise 5.3% for you to break even.

For selling, as it is at your own discretion, you may sell a larger value of share (more than $100) so in terms of percentage it will be better.

No point investing if its only $100.

 

[Jonatutu]

If thats the case isn't it better to opt for SCB and put in monthly 300dollars and buy nikko etf with lesser charging fee. The only advantage I think OCBC provide is,we get to accumulate expensive shares,overtime.

 

[hkingx]

nice thread!, bookmark lst, read tmr.~

 

[hkingx]

Hi all, had been reading on poem sbp

But the handling fee is $6+ comparing to ocbc $5 ,
If I'm only getting one counter to try it out. Meaning that ocbc one more worth it?

 

[jonlimqh]

If thats the case isn't it better to opt for SCB and put in monthly 300dollars and buy nikko etf with lesser charging fee. The only advantage I think OCBC provide is,we get to accumulate expensive shares,overtime.

Hi, sorry to sidetrack here. With regards to the nikko ETF; it comes in lot of fixed 100 shares right? In this case, to carry out a DCA via SCB, we would be investing varying amounts of $$ (rather than a fixed $300 monthly) right?

Anyway I agree with Jonatutu that i would only use the OCBC platform if i wan to accumulate blue chip shares. Even then, seems like there are many fine prints to watch out for.

 

[MikeDirnt78]

i suggest go for Phillip SBP.