FSMOne web platform

[Brown24]

Worth getting charged this management fee for auto sweep account ? Saw from their website that the yield is around 1.2%.

I put into something similar which is Stashaway money market fund giving ard 1.9% (no guarantee) and no management fees.

 

[Mecisteus]

Better to put extra cash in high interest rates bank account.

 

[MichealScott]

Anyone cares to explain what is auto sweep account ?? Thanks!!!

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[klanddt]

From the FSMOne website "
The FSM Auto-Sweep Account is a cash management account that FSMOne manages on a discretionary basis. This account invests into various money market funds and cash to provide investors seamless liquidity and higher yield at the same time."

You park your money there and they use it to invest. You make some returns and pay the management fee. You also have the liquidity as the cash you parked is not locked in.

Anyone cares to explain what is auto sweep account ?? Thanks!!!

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[kurtgoh]

was told for RSP, you will still require to have some money from the cash account, despite having money in the auto sweep account

 

[MichealScott]

From the FSMOne website "
The FSM Auto-Sweep Account is a cash management account that FSMOne manages on a discretionary basis. This account invests into various money market funds and cash to provide investors seamless liquidity and higher yield at the same time."

You park your money there and they use it to invest. You make some returns and pay the management fee. You also have the liquidity as the cash you parked is not locked in.

Hmm why would I want that if I am doing my own investments??

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[Sadisticnoob]

I put into something similar which is Stashaway money market fund giving ard 1.9% (no guarantee) and no management fees.

How they can give 1.9% when underlying fund give 1.5%.

 

[Brown24]

How they can give 1.9% when underlying fund give 1.5%.

https://www.stashaway.sg/faq/360038...7WWFVNWTNNgSXXNLl7I4Spp3j6e8VHkFTsjY1zDTR0M_I

 

[Brown24]

Hmm why would I want that if I am doing my own investments??

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its just an account for you to temp park your warchest.
Money market fund is very common tool for investor to park their cash while waiting for next opportunities.

 

[ChinoGirl]

I have asked FSM and they will buy ETF units with the full RSP amount, and this will likely result in fractional units. Should we be concerned about this?

 

[klanddt]

I suppose when you sell via RSP you can also sell odd units?

 

[Mecisteus]

I have asked FSM and they will buy ETF units with the full RSP amount, and this will likely result in fractional units. Should we be concerned about this?

Yes this is true.

If you keep for long term, it is good. ALL your money will be invested instead of refunding.

Little little fractional units will end up become whole units.

 

[MichealScott]

I have asked FSM and they will buy ETF units with the full RSP amount, and this will likely result in fractional units. Should we be concerned about this?

I prefer it to be this way if you going for long term

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[ChinoGirl]

Thanks guys for sharing your thoughts.

 

[Brown24]

I have asked FSM and they will buy ETF units with the full RSP amount, and this will likely result in fractional units. Should we be concerned about this?

That's not true for ES3. There is a refund. I not sure about other ETF.

 

[Mecisteus]

That's not true for ES3. There is a refund. I not sure about other ETF.

This is different from what I asked.

And there isn't any mentioning of refund in the FAQ if I recall correctly.

Anyway, next month is my 1st month. So let's see.

 

[klanddt]

I think by refund he probably meant if there is surplus after the purchase the money will go back to your cash account. RSP will buy as much shares as possible to your limit of cash allowed. Any surplus will be refunded back.

This is different from what I asked.

And there isn't any mentioning of refund in the FAQ if I recall correctly.

Anyway, next month is my 1st month. So let's see.

 

[Mecisteus]

I think by refund he probably meant if there is surplus after the purchase the money will go back to your cash account. RSP will buy as much shares as possible to your limit of cash allowed. Any surplus will be refunded back.

You put $500 as RSP, FSM will try to deduct $500.

If not enough money, RSP will not go through.

If enough money, FSM will deduct $500 and buys $500 worth of shares. FSM told me there is no refund from this $500.

Anyway, not a big issue. I will confirm next month.

 

[Irenicis]

Any platforms/brokers to recommend for buying ETFs? Say for US and other Asian ETFs. Would POEMs work fine as well?

Thanks!

 

[5408854088]

You put $500 as RSP, FSM will try to deduct $500.

If not enough money, RSP will not go through.

If enough money, FSM will deduct $500 and buys $500 worth of shares. FSM told me there is no refund from this $500.

Anyway, not a big issue. I will confirm next month.

So the GST and other chargers will be from this $500 or out of this $500 RSP amount?