RSP for a beginner

[missangsty]

I am looking to learn how to invest, and have limited capital. Was doing a search and chanced upon RSP on fundsupermart and... it requires as little as $100/mth which is something I'm willing to try.

Is there anything that I should take note of? This is my first time "investing", trying to learn how to grow my money.. and decided that maybe this is a risk I can take instead of putting my money in ILPs.

I am also not familiar with things to take note of when choosing a fund.. Will appreciate any tips, thank you!

 

[Epps_Sg]

Take note fundsupermart charges quarterly fees that will raise your yearly fees and eat into your capital in long run, especially if your capital is small. POEMS do not charge quarterly fees. You may be interested to read this thread.

If you are investing for long term it is most important to keep your annual running cost low in order to maximize long term returns. Look for funds that have lowest annual fees first - a 'low' annual fee may be in range of 0.5% to 1.75% per year. Then look for reasonable low initial sales charge for using RSP for the fund.

Don't buy single premium ILP for investment - most time you cant really count on your agent to give you advice. Learn to invest yourself step by step, RSP can be a good start - well you got to start somewhere, just do due diligence and find out as much about RSP and dollar cost averaging as you can first. Also, don't just rely totally on somebody else to handle your money unless you know how to tell if they know their stuffs about investment or not, and always double check information and advise by other people where possible. Always remember nobody cares about your money more than you do.

 

[missangsty]

Take note fundsupermart charges quarterly fees that will raise your yearly fees and eat into your capital in long run, especially if your capital is small. POEMS do not charge quarterly fees. You may be interested to read this thread.

If you are investing for long term it is most important to keep your annual running cost low in order to maximize long term returns. Look for funds that have lowest annual fees first - a 'low' annual fee may be in range of 0.5% to 1.75% per year. Then look for reasonable low initial sales charge for using RSP for the fund.

Don't buy single premium ILP for investment - most time you cant really count on your agent to give you advice. Learn to invest yourself step by step, RSP can be a good start - well you got to start somewhere, just do due diligence and find out as much about RSP and dollar cost averaging as you can first. Also, don't just rely totally on somebody else to handle your money unless you know how to tell if they know their stuffs about investment or not, and always double check information and advise by other people where possible. Always remember nobody cares about your money more than you do.

Thanks, I have read that thread. I am probably going to set up an account with POEMS and try it out. Also replied to the other thread regarding the charges for RSP Cash, RSP CPF, hoping to see a reply soon!

 

[Mecisteus]

For your small starting amount, you must pick a broadly diversified equity or a balanced fund. For example, Aberdeen Pacific Equity. Do your own research.