Historical Rolling Returns - DCA into STI

[Mecisteus]

just a question, if the any fund house or company that sell the ETF collapse before ? the chances very slim right ?

https://www.quora.com/What-happens-if-the-managing-company-of-an-ETF-goes-bankrupt

 

[flee0308]

SCB now got new minimum rate starting from 1 Aug.. No longer recommended to use SCB?

 

[jtec14]

SCB now got new minimum rate starting from 1 Aug.. No longer recommended to use SCB?

It is still one of the lowest at $10, but there are others with almost the same charge but with better platforms.

For me, instead doing manual DCA for local market, I switched on the automated DCA with POSB invest saver and Maybank KE MIP.

SCB will still keep for quarterly DCA for overseas market.

 

[Mecisteus]

I do not endorse you to do manual purchases yourself. Unless you are really really a very discipline person.

Go for an automated savings plan. So that your decision will not be easily affected by market sentiment.

 

[stam]

For overseas DCA, standchart still ok right?

Posted with My iPhone 6plus S HardwareZone Forums app

 

[flee0308]

Man 6% is very low :/ I'm currently 22 finishing NS and I have placed 10k into STI already, not sure if I should regret or just keep there and don't touch.

 

[chuanz]

Man 6% is very low :/ I'm currently 22 finishing NS and I have placed 10k into STI already, not sure if I should regret or just keep there and don't touch.

6% is for doing nothing is pretty good. DCA index ETF is a passive mode of investing. If you want higher returns, you'd need to do your research into companies, look for unfair advantage, hunt for arbitrage, etc. Nobody guarantees DCA will give you the highest returns. DCA itself already means average returns.

On the other hand, nobody guarantees that cherry picking your investment will net you the highest returns as well. It will probably be the case for some ppl, but you'll have to find out yourself if you're among those "some people" or not.

You're now 22, you have plenty of future to burn and make mistakes. You can set aside maybe half for DCA (safety net), half to try for cherry picking (venture out!).

 

[OngHuatHuat]

It is not even 6 % to begin with.

Man 6% is very low :/ I'm currently 22 finishing NS and I have placed 10k into STI already, not sure if I should regret or just keep there and don't touch.

 

[Niccolo Machiavelli]

thanks for this TS. good read.

 

[flee0308]

It is not even 6 % to begin with.

Isn't is >6% with dividends reinvested?

 

[OngHuatHuat]

Doubt so. The dividend most likely is mid 2.5 % to 2 % region, but TS assume it to be 4 % without any justification.
If you do a simple dca since year 2014, most likely now you are still in a net negative region.

Isn't is >6% with dividends reinvested?

 

[mummy1234]

I think USA stock market has better record over long term that is why their investment books recommend buy and hold strategy but over last 10 years, my SGX stocks never recovered much of their loss prob because I never rebalance my portfolio, mistakenly, thinking buy and hold can work in Sg too.

 

[Mecisteus]

Isn't is >6% with dividends reinvested?

Just ignore him. His definition of DCA is already wrong at the first place. So there is no point discussing. Furthermore, the non-belivers will always pick up some non favorable windows to prove that DCA does not work.

The numbers are up there for you to see. All I can say, the numbers are bound to go up if STI is above 3,000.

 

[Mecisteus]

I think USA stock market has better record over long term that is why their investment books recommend buy and hold strategy but over last 10 years, my SGX stocks never recovered much of their loss prob because I never rebalance my portfolio, mistakenly, thinking buy and hold can work in Sg too.

Mummy it very much depends on what stocks you buy and hold.

 

[OngHuatHuat]

I just said I consider dividend reinvest as part of dca. Then you keep saying I get the definition wrong. Did I say dca definition is purely based on dividend reinvest?

I already posted out the dividend yield over the recent few years, considering the fact that sti is lower now, the dividend yield on that table is an overestimation, which also means your assumption of 4 % is definitely an extra over estimation.

Just ignore him. His definition of DCA is already wrong at the first place. So there is no point discussing. Furthermore, the non-belivers will always pick up some non favorable windows to prove that DCA does not work.

The numbers are up there for you to see. All I can say, the numbers are bound to go up if STI is above 3,000.

 

[mummy1234]

Mummy it very much depends on what stocks you buy and hold.

I try to buy mostly blue chips but prob my timing was wrong, bought some around 2008 at a high before the fall.

 

[Mecisteus]

I try to buy mostly blue chips but prob my timing was wrong, bought some around 2008 at a high before the fall.

You should just consider DCA into STI ETF. Picking individual stocks requires more skills and good timing. This thread has little to do with timing. The only time involved is your time horizon.

 

[angtc11]

I was thinking of starting STI ETF DCA and this thread came up at the right time. Though I have not done the maths, adding X% to the calculated returns to account for dividends is a quick way to estimate overall returns and should not differ too much from actuals. Dividend reinvestment is another ball game altogether and isn't easy to model, notwithstanding the lack of data pre-ETF days.


I did up a Google sheet to work out the numbers with similar assumptions as TS using XIRR to calculate the returns and got quite close to TS numbers. Added in the holding periods from 1 to 20 years since its all formula based

I can share the Google sheet link if anyone is interested.

 

[Mecisteus]

I was thinking of starting STI ETF DCA and this thread came up at the right time. Though I have not done the maths, adding X% to the calculated returns to account for dividends is a quick way to estimate overall returns and should not differ too much from actuals. Dividend reinvestment is another ball game altogether and isn't easy to model, notwithstanding the lack of data pre-ETF days.


I did up a Google sheet to work out the numbers with similar assumptions as TS using XIRR to calculate the returns and got quite close to TS numbers. Added in the holding periods from 1 to 20 years since its all formula based

I can share the Google sheet link if anyone is interested.

Total Returns = Capital Gain + Dividend Yield

What I did is just the Capital Gain portion only. If you know the average dividend yield, you can safely add the dividend yield if you choose to reinvest the dividends. You will get quite close to an actual and average Total Returns.

The reason why I did not include dividends because I don't have the EXACT dividends data as I am dealing with ST Index from a very long period of time. I can only get those recent dividends data from the STI ETF.

The formula I used is the exact same formula if you use XIRR. The same formula you use when you calculate annuity or mortgage rate. So yes, the numbers should be close if you use XIRR. The slight difference is probably due to the difference in date.

Anyway, it is good that someone has verified the numbers. If not, there will be non-believers who will doubt my numbers.

 

[mummy1234]

How do you DCA into STI ETF? I still depend on calling my broker over the phone to buy shares. If it is a good way to DIY investing, sure would like to try it out. Only thing is I think, DCA into USA ETFs might have better returns.

what are the cheaper ways to buy shares other than through broker?