Current choices for investing in STI ETF

[wacks_505]

Thanks to all the gurus for your input. And interesting to see the different investing strategies put forward.

Seems like I will be buying a couple of STI shares this month then

Yes I'm definitely in this for the long run since my job doesn't give me much time to be mucking around with growth stocks that I have to monitor. Just buy and throw to the back of my mind mostly.

Thanks again for your input guys. Hope to learn more from u old birds in this forum

 

[mikafire]

becoz i know what i am getting into
newbies dont know and they will be slaughtered
so for their safety, i play it safe and advise them not to invest till after market crash

2nd tat for mi

 

[ironsteel]

How much would you guys recommend putting into STI ETF monthly to keep the transaction fees low? It has to be a consistent amount monthly to be able to benefit from DCA right? Looking at about $500-600 now, but wondering if I can only afford to put about $300 in a month, should I buy once every two months? Would that defeat the purpose of DCA?

 

[jysw1986]

How much would you guys recommend putting into STI ETF monthly to keep the transaction fees low? It has to be a consistent amount monthly to be able to benefit from DCA right? Looking at about $500-600 now, but wondering if I can only afford to put about $300 in a month, should I buy once every two months? Would that defeat the purpose of DCA?

Hmmm i'm thinking the same thing as well.
However u cant buy 100 shares with $300. It cost more than that at the moment. So need to find best way to CDA

 

[Perisher]

DCA is about consistency, doesn't really matter if you put it in every month or every two month because you are not trying to time it. Consistency is the key. As long as you buy every certain set period and persevere, it is a form of DCA. Go ahead.

 

[crazycow]

He already say he newbie liao, you still expect him to be good in cherry picking?

Wait for crash, if crash comes 5 years later then he missed out on 5 year of growth. Besides, stock usually recovers within 2-3 years after crash.

If crash comes 2 years later, he kinda avoided the heartache.

You yourself is 100% in stock, and you recommend him to wait? haha.
So you expect a crash is coming or not?

http://www.fool.sg/2015/02/16/the-danger-of-waiting-for-a-market-crash-before-you-invest/

 

[FlameEvil]

How much would you guys recommend putting into STI ETF monthly to keep the transaction fees low? It has to be a consistent amount monthly to be able to benefit from DCA right? Looking at about $500-600 now, but wondering if I can only afford to put about $300 in a month, should I buy once every two months? Would that defeat the purpose of DCA?

Any amount as long as u buy every month, thats DCA

 

[Debron]

Just wanted to share this article we wrote a couple of months back on applying DCA to STI ETF for your reference:

stockresearchasia.com/using-passive-investing-to-beat-the-market.html

Again I can't post links so you would have to copy and paste the url. Cheers!

 

[winguy]

To be strict that is not the meaning of DCA. Well at least this is my interpretation.

Buying at a fixed period such as monthly with new monies is called periodic investing.

The context of DCA is when you have a sum of money, do you invest it lump sum now or do you do it over a period of say 12 months thereby dollar cost averaging.

 

[Debron]

Hi, not sure whether winguy was replying to FlameEvil or referring to the article link I posted. Anyway, just to clarify, the concept of DCA requires you to buy an equal dollar amount of the securities every period say $500, be it monthly, weekly, or fortnightly. Obviously, the more frequently you trade, the more transaction fees you incur.

This is where the 3 schemes on the market by POEMs, OCBC and POSB come in. Essentially, they aggregate all their participants' orders and trade them in bulk monthly, thus they can lower the monthly transaction fees they charge to each retail investor.

Varying the amount of investments per month would not be considered DCA and would run contrary to its basic principles because it reintroduces back an element of market timing. Hope this clarifies.

 

[w1rbelw1nd]

Well, if I have $2000 spare cash in a month and i choose to invest that sum into STI, it is not called DCA, from my understanding. I am merely investing all the money I have, rather than taking a huge sum of money and investing it consistently over a long period of time.

Anyway, does it really matter? Ultimately the effect of this is the same as DCA, just that the cash inflow for investment is different.

 

[FlameEvil]

Just to rephrase my post above, any amount means u can start $100/mth or $500/mth fixed. So doesn't matter of the fixed amount u put in monthly as long as u put in every month.

Sent from the power of my mind using GAGT

 

[Debron]

Just to rephrase my post above, any amount means u can start $100/mth or $500/mth fixed. So doesn't matter of the fixed amount u put in monthly as long as u put in every month.

Oh I see. Sorry if I misunderstood what you said. Cheers!

 

[ivanftp]

DCA works because you are spreading your bets across time so you do not risk making a lump sum investment at a bad time like at the peak before the 2008 crisis.