Best RSP platform?

[19degC]

Hi, I am thinking of starting a regular rsp with a time frame of 20 yrs

I saw dbs offering 0% sales charge, wonder will it become 5% in future?

Fundsupermart and poems seems good about 0.5% i think

Anyone got any good advise?

Thanks in advance

P.S. Not interested in any insurance investment linked products.

 

[o0KelviN0o]

I thought its 0% charge for fundsupermart RSP? Only the platform fee for non-cpf transactions

 

[19degC]

Hi kelvin thks for replying. For fsm how much is the platform fee? Thanks. Is it worth to take dbs scheme?

 

[raymond350]

FSM charges 0.125% quarterly for the platform fees. It is payable by auto selling the best performing unit trusts to pay for it. For the long term, this 0.5% platform fees will cost much more than say if the sales charge of 3%. You can do the math to find out.

 

[19degC]

FSM charges 0.125% quarterly for the platform fees. It is payable by auto selling the best performing unit trusts to pay for it. For the long term, this 0.5% platform fees will cost much more than say if the sales charge of 3%. You can do the math to find out.

u are right. darn. any cheaper alternatives?

 

[Shiny Things]

If you don't mind going for shares instead of unit trusts, it's worth looking at OCBC's Blue-Chip Investment Plan. For that matter, if you've got about $300 a month or more to invest, you might as well just go to the source and buy the shares directly via Stanchart. $300'll get you one lot of G3B, the Nikko STI ETF, which is a great thing to buy-and-hold for 20 years - and the fees on shares and ETFs are a lot lower than on unit trusts.

 

[Bedokian]

u are right. darn. any cheaper alternatives?

Unless you want to try out ETFs.

If your RSP is in the form of a fixed amount, you can look at POSB's Invest Saver or OCBC's Blue Chip Investment Plan. Else, if you are lot-centric (buying 100 shares regardless of price), the Nikko AM STI ETF is a good one (vested).

 

[blurblur123]

If you don't mind going for shares instead of unit trusts, it's worth looking at OCBC's Blue-Chip Investment Plan. For that matter, if you've got about $300 a month or more to invest, you might as well just go to the source and buy the shares directly via Stanchart. $300'll get you one lot of G3B, the Nikko STI ETF, which is a great thing to buy-and-hold for 20 years - and the fees on shares and ETFs are a lot lower than on unit trusts.

I am trying out this method currently... love it... I am still waiting for the SGX to implement the 100 shares = 1 lot for SPDR STI ETF and ABF bond... haha

 

[raymond350]

Dollardex offers no platform fees, and it allows credit cards payment for its equity funds, albeit at higher sales charges.

 

[neanea]

Shiny things why StandChart?

If you don't mind going for shares instead of unit trusts, it's worth looking at OCBC's Blue-Chip Investment Plan. For that matter, if you've got about $300 a month or more to invest, you might as well just go to the source and buy the shares directly via Stanchart. $300'll get you one lot of G3B, the Nikko STI ETF, which is a great thing to buy-and-hold for 20 years - and the fees on shares and ETFs are a lot lower than on unit trusts.

 

[kakaboo]

Shiny things why StandChart?

because no minimum commission ...

 

[19degC]

Dollardex offers no platform fees, and it allows credit cards payment for its equity funds, albeit at higher sales charges.

I just checked. Dollardex charges a 1.5% sales charge plus gst ie 1.605% for every rsp month that i save. Credit card got extra charge of 2.5%, rsp cannot use credit card.

 

[neanea]

Dollardex offers no platform fees, and it allows credit cards payment for its equity funds, albeit at higher sales charges.

Any others that does not charge platform fee?

Which is the cheapest if parking funds for long term?

 

[yanbros]

I thought fundsupermart don't have any sales charge for RSP?

 

[raymond350]

Any others that does not charge platform fee?

Which is the cheapest if parking funds for long term?

I thought fundsupermart don't have any sales charge for RSP?

Personally I use both FSM and dollardex, find dollardex sales charge reasonable, not sure about other fund distributors.

As I have mentioned, in the long term, any platforms that doesn't have platform fees will be better than those that have it, even if they have higher sales charge.

Did a calculation here.

 

[19degC]

Personally I use both FSM and dollardex, find dollardex sales charge reasonable, not sure about other fund distributors.

As I have mentioned, in the long term, any platforms that doesn't have platform fees will be better than those that have it, even if they have higher sales charge.

Did a calculation here.

I have calculated:
For FSM, based on saving $100/mth for 20 yrs, the total platform fee paid will be $1215. Total investment capital is $24000. $1215 of $24000 is 5% already, higher than most sales charges. And if market value 20 yrs later is $40000 instead of just $24000, the platform fee will be even higher than $1215, cos it is a percentage of actual market value over the years.

Relatively, the upfront sales charge of 1.5% by Dollardex will be FIXED at $360 for the whole 20 yrs, regardless of how much your investment has grown.

 

[neanea]

Which one does not have platform fee for long term holding?

 

[yanbros]

I have calculated:
For FSM, based on saving $100/mth for 20 yrs, the total platform fee paid will be $1215. Total investment capital is $24000. $1215 of $24000 is 5% already, higher than most sales charges. And if market value 20 yrs later is $40000 instead of just $24000, the platform fee will be even higher than $1215, cos it is a percentage of actual market value over the years.

Relatively, the upfront sales charge of 1.5% by Dollardex will be FIXED at $360 for the whole 20 yrs, regardless of how much your investment has grown.

Where do you see platform fees for rsp on fsm? I don't see any.

 

[raymond350]

Which one does not have platform fee for long term holding?

Dollardex offers no platform fees, and it allows credit cards payment for its equity funds, albeit at higher sales charges.

Where do you see platform fees for rsp on fsm? I don't see any.

From FSM website: "Platform fee is accrued daily and deducted based on the combined holdings of all Fundsupermart accounts under the main account holder, inclusive of any beneficiary account holdings on a quarterly basis."

RSP just exempts you from the one time sales charge. As 19degC and me have shown, it is the "lower" ongoing platform fees that makes up bulk of the costs.

Theoretically speaking, why not enjoy the best of both worlds, FSM 0% sales charge and DD 0% platform fees, using this? Maybe can do this once every few years?

 

[19degC]

From FSM website: "Platform fee is accrued daily and deducted based on the combined holdings of all Fundsupermart accounts under the main account holder, inclusive of any beneficiary account holdings on a quarterly basis."

RSP just exempts you from the one time sales charge. As 19degC and me have shown, it is the "lower" ongoing platform fees that makes up bulk of the costs.

Theoretically speaking, why not enjoy the best of both worlds, FSM 0% sales charge and DD 0% platform fees, using this? Maybe can do this once every few years?

DBS is having promo now and charging 0% but only until end of the year.
Afterwhich will be 3% sales charge. In the long term, DDex seems to be the cheapest.