Recommend a DCA vehicle

[precision]

Currently have a DCA in pacific equity fund for about 4 yrs+, currently in the red at 4% (unfortunately)

Looking for a 2nd DCA, not very sure if there are better options out there in terms of higher potential, lower transaction costs, etc.

Open to all kinds of DIY investment. Time frame is 20 yrs.

Pls advise thanks

 

[OngHuatHuat]

Can tell us which dca vehicle that you chose?
This fund tracks which index?
Negative 4 % is inclusive of dividend reinvested?

Currently have a DCA in pacific equity fund for about 4 yrs+, currently in the red at 4% (unfortunately)

Looking for a 2nd DCA, not very sure if there are better options out there in terms of higher potential, lower transaction costs, etc.

Open to all kinds of DIY investment. Time frame is 20 yrs.

Pls advise thanks

 

[OngHuatHuat]

 

[precision]

Can tell us which dca vehicle that you chose?
This fund tracks which index?
Negative 4 % is inclusive of dividend reinvested?

yes from fsm

dont think this fund has dividends

 

[OngHuatHuat]

yes from fsm

dont think this fund has dividends

I think they assume simple dividend reinvested model.
Even with sti etf expense ratio of 0.3%, your result should be somewhat the same due to broad market going down and the main culprit behind is reverse QE.

Ever consider DCA into a dividend based model(ignore capital gain) or just buying into bonds?

If you chose to invest in CPF special at 4% and assume you get the extra 1 % the first 60 K and tax rebate on 7% on the amount you put in, your return would be much better. Just saying...but CPF special cannot be withdrawn before 55 years old.

 

[MikeZhang]

Currently have a DCA in pacific equity fund for about 4 yrs+, currently in the red at 4% (unfortunately)

Looking for a 2nd DCA, not very sure if there are better options out there in terms of higher potential, lower transaction costs, etc.

Open to all kinds of DIY investment. Time frame is 20 yrs.

Pls advise thanks

To earn money from dca strategy, you can only exit when it's a bull market. If your time frame is 20 years, then you should start looking at the market and be ready to exit around 15 years later.

 

[precision]

To earn money from dca strategy, you can only exit when it's a bull market. If your time frame is 20 years, then you should start looking at the market and be ready to exit around 15 years later.

Very true, just like my current situation now

Not too long ago, I was still in the black.

Anyway, for my 2nd investment, I am thinking about

1) Bonds
2) ETFs
3) POEMS Sharebuilders Plan
4) POSB Investsaver

Not sure which to invest?
Generally not active in investing. Prefer DCA long term, compound interest kind.

 

[OngHuatHuat]

I will choose bonds. More consistent returns.

Very true, just like my current situation now

Not too long ago, I was still in the black.

Anyway, for my 2nd investment, I am thinking about

1) Bonds
2) ETFs
3) POEMS Sharebuilders Plan
4) POSB Investsaver

Not sure which to invest?
Generally not active in investing. Prefer DCA long term, compound interest kind.

 

[MikeZhang]

Very true, just like my current situation now

Not too long ago, I was still in the black.

Anyway, for my 2nd investment, I am thinking about

1) Bonds
2) ETFs
3) POEMS Sharebuilders Plan
4) POSB Investsaver

Not sure which to invest?
Generally not active in investing. Prefer DCA long term, compound interest kind.

Depending on what kind of strategies you comfortable with. Some may go for core-satellite approach strategies. While others just find something and just dca without knowing what will be the risk they are expecting ahead.

Just like a Soccer field, have a good balance of asset class in your investment portfolio. Dun expect to win a Soccer match with 11 strikers or 11 defender

 

[Shiny Things]

Very true, just like my current situation now

Not too long ago, I was still in the black.

Anyway, for my 2nd investment, I am thinking about

1) Bonds
2) ETFs
3) POEMS Sharebuilders Plan
4) POSB Investsaver

Not sure which to invest?
Generally not active in investing. Prefer DCA long term, compound interest kind.

I think you might be confusing "products to invest in" with "ways to get access to those products".

Bonds (and stocks) are products you can invest in; ETFs, POEMS, and POSB are ways to invest in bonds and stocks.

Bonds are less volatile, but they tend to have lower returns; stocks tend to have higher returns over the long term, but they go up and down a lot more.

Your "Pacific" thingy you've already bought is a unit trust that invests in stocks - specifically, stocks from China, India, Malaysia, Singapore, Indonesia, and Thailand. That means you already own some stocks, so you probably want to own some bonds.

The easiest way to buy some bonds is to buy a bond ETF, and the best (cheapest and most sensible) bond ETF is A35, listed on the SGX. A35 (that's its stock code, hence the weird name) owns a bunch of Singapore government bonds, and some HDB and LTA bonds as well.

You can buy A35 through POSB Invest-Saver for relatively little money.

So:

• You want to buy some bonds, because you already own stocks;
• The easiest way to buy bonds is through a bond ETF;
• A35 is a good, low-fee bond ETF that owns Singaporean bonds;
• You can buy A35 through POSB Invest-Saver.

Got it?