Saturday, July 27, 2013

Nikko AM - Diversifying Your Investment Portfolio With ETFs

Part 2 of Nikko AM advertistment on Today newspaper. If you want to achieve the below easily, consider this :

POSB 
- Regular Savings Plan (RSP) @ 0% sales charge (until 31 Dec 2013)
- Minimum investment sum of $100 monthly
(not sure about the initial investment, $1000 if I'm not wrong)

Fund Name 
- Nikko AM Balanced Funds - MyHome Fund HomeGrowth
- 80% into the Nikko AM Singapore STI ETF; and
- 20% into the ABF Singapore Bond Index Fund.
- Management Fee 0.5% p.a. from Fund Factsheet

Extracted from POSB Website

How does RSP work?

- With a RSP you make fixed monthly investments, regardless of market conditions
You avoid the uncertainties of market timing, by not speculating on the “right” time to invest your capital as a lump sum
- By investing a regular sum each time, you have the benefit of “dollar cost averaging” through buying fewer investment units when prices rise but more units when prices fall
- Over time, your average unit cost is lower than the average market price of the security during the same period of time



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4 comments:

  1. AnonymousJuly 29, 2013 at 3:51 PM

    Hi,
    Thanks for your informative post.

    Isnt it better to invest My HomeGrown fund ? It is less costly and easier. This is what I need.

    Thank you again.

    Phyllis

    ReplyDelete
    Replies
    1. TIJuly 30, 2013 at 11:07 PM

      Hi Phyllis,

      Not too sure what you're referring to when you said "My HomeGrown" fund. Are you able to provide a link or the exact name?

      Delete
  2. AnonymousAugust 4, 2013 at 11:56 AM

    hi, i refer to the niko am homegrown fund in your post. it has an equity and a bond built into one. this is what i need. thanks for your post. phyllis

    ReplyDelete
    Replies
    1. TIAugust 5, 2013 at 12:10 AM

      When you say better, are you comparing it to POSB Blue Chip Invest Saver?

      POSB RSP MyHome Fund HomeGrowth
      - sales charges = 0% (until 31 Dec 2013)
      - fund management fee = 0.5%

      POSB RSP Invest Saver
      - sales charges = 1%
      - fund management fee = N.A. (there is really nothing to manage, since we are only buying into Nikko AM STI ETF)

      Whether or not one is better than the other really depends on the costs, and what you're trying to achieve. Will sales charges remain the same as now?

      For POSB RSP MyHome Fund HomeGrowth, you can easily buy into both equity/bond and by paying the fund management fee of 0.5%, it will automatically help you to balance the two components.

      Delete

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