STI is still hovering between 2,800 and 2,900 points. It was a slow April as compared to March.
Added the following counters:
300 shares of Keppel Corp.
2,357 shares of OUE Hospitality Trust (Rights Issue)
I have invested in the Nikko AM STI ETF, using a monthly investment plan, since Aug 2013. Till date, it is my biggest holding in my portfolio (25.8%). And till date, excluding the dividends, it is still down 8.39%. This is my biggest losing counter (No! Yongnam is my biggest mistake!).
Well, I will continue to invest in the STI ETF monthly. I personally believe this is the most passive investing method. Love the fact that it is automated.
Can't wait for the next few months to accumulate more shares.
Why do you choose Nikko ETF rather than SPDR ETF ES3? I realized you choose all the biggest in the industries (Keppel, DBS) instead of smaller ones (Sembcorp, OCBC/UOB). What about telecommunications? (Singtel, Starhub, M1)? Other than size, is there other reasons you choose them? What are your thoughts about the economy as a whole? (Recession? STI seems to be on a bearish run)
ReplyDeleteHi CW, Sorry for the late reply. I have been too busy at work. Have not even updated my blog for 3 weeks. To answer your questions. 1) I am using the OCBC Investment Plan to buy the STI ETF monthly. There is only Nikko ETF. That is the reason. 2) I do want to buy Singtel but the price seems a bit expensive. I do hope there will be a correction so that I am able to accumulate Singtel shares. 3) I do not write about why I buy a certain stock. The main reason is because I am not an expert and I really do not want to give any advise or wrong advise. DBS and Keppel, from my own research and analysis, I personally feel they are better counters has compared to their competition (Sembcorp, OCBC/UOB). 4) Recession? I really do not know how the market will turn. The market seems to have slowed down even commercially (I can feel it at my work place). Anyway, no one can predict the market. I just have my war chest (spare cash) ready if there is a big drop to accumulate good counters.
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Hello there. I'm glad CW asked that question on why Nikko. I currently trade via SCB and I'm inclined to give the monthly investment plan a go. Looking to accumulate the top 30 stocks on STI for passive income as well.
ReplyDeleteHow should I go about doing this? Will I need a CDP account (linked with a local bank)?
I also remember reading that the expense ratio for Nikko is higher than that of SPDR. How is this calculated (and deducted) then? How to keep track?
Apologies if my question is noob. Just started off not too long ago and seeking investment ideas and tips on the go!
Look forward to your reply!
If you don't mind revealing (pardon me if you've written on this but I missed it), how much do you deposit monthly for the automation to roll?
DeleteI just started out and am limited on budget. Was thinking about (the norm) $100/mth. But I'm concerned that it's too little to even cover the cost and fees, much less to make any returns.
Hi Soon Chuan,
DeleteFirstly, if you are going to use the POSB Invest-Saver or OCBC BCIP to purchase the Nikko STI ETF, you do not need a CDP account.
As for the expense ratio, this means that holding $10,000 in the SPDR® STI ETF costs $12 less per year than holding the same amount in Nikko STI ETF. The tighter bid/ask spread. I do not really keep track because i am buying it monthly for a long term. Have been doing it for 3 years accumulating about 45K worth of shares.
I am using my SRS account (open in OCBC) linked to my OCBC BCIP to purchase the Nikko STI ETF.
Next for both POSB Invest-Saver and OCBC BCIP, there is a different sales charge. I did not blog about this. You have to do the maths for which is better based on the amount you would like to invest monthly. For $100 a month, i believe POSB will be better with the 1% sales charge.
I do keep track of the monthly transaction (number of shares accumulated and sales charges).
I hope it answers your questions.
Thank you for your reply!
DeleteCan I also ask... it's called monthly savings plan right? If I default on one month (say deduct $100 in January, another $100 on February... but I don't have enough for March deduction, so I skip it...) what will happen?
DeleteSorry Soon Chuan for the late reply. have been too busy with work and traveling. I can't answer your question with certainty. I believe I did default one month before due to the lack of funds in the bank (which was my fault). And i believe it just skipped that month. However, It is best to check with the bank rep on this issue.
DeleteIf it is going to be a long term commitment, automate it and try not to default.
For the record, as of today, after three years of buying STI ETF, i am close to 6% down excluding the dividends i got. The dividends probably covered the lost.
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Thanks for describing such things on your blog. Your blog is well written.
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