Stock Investing for NSF

[Lustrea]

Hi, I am 20 y/o this year and I am thinking I should start investing now. However, there are a few questions I have in mind.

1. Currently, I only have about S$2,000 with an additional "income" of $250 a month (that's what I plan to save monthly). Is it too little a sum for me to go ahead trading now? Due to factors like charges/fees?
I could go for stocks for e.g. 3 lots Starhub, 3 lots ST Engg, 2 lots SEMBCorp. And from there onwards slowly build up my portfolio. I would prefer blue chips and the time frame probably 5y before I readjust my stocks preference etc.


2. Or it would be better if I throw into a fixed deposit / investment linked plans for 5y / 10y as tenure.

Your help is greatly appreciated.

 

[Darkzi0n]

not investment linked.

 

[fflover2004]

If u really need to, DCA with POSB investsaver of STI ETF

else, i think you should just keep it in a high interest saving acct such as sc dash or ocbc frank. once you have a higher income, then consider investing.

 

[Lustrea]

If u really need to, DCA with POSB investsaver of STI ETF

else, i think you should just keep it in a high interest saving acct such as sc dash or ocbc frank. once you have a higher income, then consider investing.

Around how much would I need (estimate) before I can start investment properly?

 

[floralgaragesg]

I think 2,000 is too little to start. Can invest in some skills then earn a little money before looking at stocks. You can also invest in business.

 

[floralgaragesg]

Maybe get a rich girlfriend haha. Best investment

 

[djchris]

Hi, I am 20 y/o this year and I am thinking I should start investing now. However, there are a few questions I have in mind.

1. Currently, I only have about S$2,000 with an additional "income" of $250 a month (that's what I plan to save monthly). Is it too little a sum for me to go ahead trading now? Due to factors like charges/fees?
I could go for stocks for e.g. 3 lots Starhub, 3 lots ST Engg, 2 lots SEMBCorp. And from there onwards slowly build up my portfolio. I would prefer blue chips and the time frame probably 5y before I readjust my stocks preference etc.


2. Or it would be better if I throw into a fixed deposit / investment linked plans for 5y / 10y as tenure.

Your help is greatly appreciated.

With a small capital, I'd be careful not to over diversify and have 1-3 lots of many different companies. Maybe keep purchasing a blue chip company till you have quite a significant holding before moving on to the next company. When I was your age, I put my first $2000 on a penny stock which grew significantly many years later.

I disagree with the YOLO people who think that you should just spend it and crap like that.

 

[malagas01]

Low capital buy 4D better...higher returns...lol

 

[Lustrea]

Low capital buy 4D better...higher returns...lol

Set aside already.. Haha..

 

[Lustrea]

With a small capital, I'd be careful not to over diversify and have 1-3 lots of many different companies. Maybe keep purchasing a blue chip company till you have quite a significant holding before moving on to the next company. When I was your age, I put my first $2000 on a penny stock which grew significantly many years later.

I disagree with the YOLO people who think that you should just spend it and crap like that.

I am thinking of either putting them into Nikko AM STI ETF or going through penny stock using that amt.

 

[djchris]

I am thinking of either putting them into Nikko AM STI ETF or going through penny stock using that amt.

Didn't you mentioned in the OP that you want to invest in blue chips? What's the reason for your change in plans?

 

[lunafan]

Hi, I am 20 y/o this year and I am thinking I should start investing now. However, there are a few questions I have in mind.

1. Currently, I only have about S$2,000 with an additional "income" of $250 a month (that's what I plan to save monthly). Is it too little a sum for me to go ahead trading now? Due to factors like charges/fees?
I could go for stocks for e.g. 3 lots Starhub, 3 lots ST Engg, 2 lots SEMBCorp. And from there onwards slowly build up my portfolio. I would prefer blue chips and the time frame probably 5y before I readjust my stocks preference etc.


2. Or it would be better if I throw into a fixed deposit / investment linked plans for 5y / 10y as tenure.

Your help is greatly appreciated.

When your amount is $2k, not advisable to spread over so many different stocks. You will get makan by the commission...

 

[coloumbiaGames]

I am thinking of either putting them into Nikko AM STI ETF or going through penny stock using that amt.

Go for spdr sti etf instead, lower expense ratio.

Sent from The sky using GAGT

 

[Lustrea]

Didn't you mentioned in the OP that you want to invest in blue chips? What's the reason for your change in plans?

I am thinking if at S$2,000 whether I will get eaten up by commission too..

 

[coloumbiaGames]

I am thinking if at S$2,000 whether I will get eaten up by commission too..

Use standard chartered to buy instead,but I think minimum age is 21.

Sent from The sky using GAGT

 

[zul99z]

Hi ts, I`m in the same exact situation as you. 20 years old, about 4k savings and saving $500 monthly from my NS allowance. I too posted a thread here to seek guidance from knowledgeable forumers here. From what I've gathered so far, you should first brush up your knowledge regarding the investment world. Fully understand what all the different jargon means. This can be done via forums and (local) blogs and Google.

Next, read this book- A random walk down Wall Street. I've just purchased the book, will start reading it tonight. After you're confident that your knowledge of the investing world is sufficient, take a look at nikko etf. Get to know the return rates in the long term, risks, how prices are affected etc. When this is done, open a Regular Savings Plan via POSB (as you're below 21) and start investing your $200 every month into Nikko ETF. I just subscribed to the RSP two days ago haha. Oh and once you've hit 6 trades and am 21 years old, open a SCB tradings account as commissions are much cheaper.

Only gripe I have with POSB- being unable to purchase the shares on my own accord at my desired timing. Wanted to take advantage of the weak prices and purchase 2 lots of the Nikko ETF today but I can`t as POSB only purchase it on the 12th every month. So if by then the price has risen above $3, I would get lesser amount of shares due to the higher price. Oh well what to do, I`m still a 20 year old boboi

 

[fflover2004]

Around how much would I need (estimate) before I can start investment properly?

for me, i would take my spare cash that i wont touch for years and build up from there. thing is, ur too young and you might need those cash later on.

So i would suggest starting small if you really wan to invest, like DCA on STI, or stocks via OCBC BCIP or Maybank. be warned that the commision will torture you.

or wait till 21 and open Stanchart equities acct, then ownself DCA. u need to be v disciplined for it to work else no pt.

 

[marvel.avengers.ultron]

For investing, its always recommended to start young.
You pick up knowledge along the way, and the amount you are losing while young is insignificant compared to what you would be earning in future in your working adult life.

Having said that, please make sure you have set aside some money for rainy days.

Exercise some restraint, start with small amounts you are comfortable with , as you learn the trade along the way.

Most importantly, hope you learn how to manage your finance well.

Remember this, no fund managers nor your loved ones are responsible for your financial well-being except yourself

Cheers=)

 

[Lustrea]

Thanks everyone.
Well now I came across OCBC BCIP as well. I think it would be better plan than the Posb-Invest plan right?

 

[djchris]

Thanks everyone.
Well now I came across OCBC BCIP as well. I think it would be better plan than the Posb-Invest plan right?

Do a comparison of the fees. I believe POEMS also offer a similar program.