Sunday, March 8, 2015

Regular Stock Investment Plans Comparison In Singapore

regular stock investment plan
If you have not already know, there is a new kid on the block in the Regular Stock Investment Schemes in Singapore, it is non-other than Maybank Kim Eng. They have just launched their Monthly Investment Plan which is bigger and wider in the coverage. Besides, they are having a promotion of $0 commission/fee from now till 31st August 2015. 

For the ease of comparison, I've compiled a simple table to compare some of the salient features of these Dollar-Cost Averaging Investment Schemes which include :

Phillip Securities' Share Builders Plan (SBP)

Now, check out the comparison below:

Click on the image to enlarge
Note : For the complete details and features of the plans, please refer to their official sites.  

This timely launch might stir up the market a bit especially among the key players, which is a good thing for the consumers. Personally, I do believed in Dollar-Cost Averaging Investment method and am considering the "new kid on the block". 

Are you maintaining any dollar-cost averaging investment plan with any of the provider? Any valuable experience/feedback to share?

16 comments:

  1. Wow... Thats a really attractive plan. Plus it's the first to allocate counters other than SG market. Unfortunately, I am more focused on growing my account rapidly using the limited capital i have. Hence i would not be able to afford doing Regular Investment Plans. But i do advocate it to anyone who are interested to invest in the market with lower risk (if you buy the market ETF) and with lower capital over a long period (>5-10years).

    ReplyDelete
    Replies
    1. Investing wolf : I think the regular investment plan is cater for those do not want to invest in lump sum and rather split them in fixed interval so that they can have the benefit of "time in market".. The zero and low fee is very attractive to me...

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  2. Hi Richard,

    Thanks for the nice comparison :)

    Do you happen to know if the May Bank's plan includes reinvestment of dividend proceeds to buy back the underlying counters? Or is the dividends paid out in cash?

    ReplyDelete
    Replies
    1. LP : You are most welcome! Good question, I have been searching their site for the same question too but to no avail i.e. their FAQ do not cover this. As we need to open a pre-funded brokerage account with them, I am of the view that they will credit back to our account. Will update the comment if I've gotten the answer.

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    2. Ya, couldn't find it either. It's quite an important question if you're looking at a group of passive investor who does not want to look at the market at all. Just put in a sum and let it roll and roll.

      You're going to open an account with them?

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    3. LP : Yes, will be opening an account with them... Will use it as a back-up account too (inspired by your earlier post). Also, it seems that they have some kind of rewards program as well as lower minimum commission of $18 ;-)

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  3. I send an email to enquire about trading odd lots (since POSB only allows full redemption), they replied that you may trade odd lots offlije through the trade representative assigned to service your account.

    There would be different brokerage charges payable for online and offline trading.

    ReplyDelete
    Replies
    1. WeiJie : Thanks for the comment, I guess you are right, ultimately, we need to handle the situation of selling odd lots for such plans, with the lot size reduced to 100 now, I guess the issue might not be that severe.. Cheers!

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  4. Hi Richard,

    Great job in collating all the most commonly used regular investment plans! Clear cut.
    OCBC BCIP once provided promotion for zero minimum commission cost which I'd took advantage off too.
    For myself, anything above 1% of commission is not very welcomed, so I might still consider MayBank since it's 1% per round trip :)

    The Independent Abecedarian
    http://www.theindependentabecedarian.com/

    PS. Issues with Name/URL selection

    ReplyDelete
    Replies
    1. TIA : You are most welcome. One added benefit of maybank is their Rewards program, I've just opened a trading account with them ;-)

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    2. Hi Richard,
      May I know if you have embarked on this already?
      Do you know by now if they would reinvest the dividends or just payout into account?
      Thanks!

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    3. Hi Marc,

      I've still haven't decided which platform to use (either Phillips' POEMS or Maybank Kim Eng's), you can have an option to reinvest the dividends or cash out.

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  5. Hi all,

    Anyone has any idea for Maybank's MIP, how much is the cost of selling? is it based on the charges of the KE trade at 18 dollars minimum? or will it be the same as the sales charge at 1% of value?

    ReplyDelete
    Replies
    1. Hi Initiatives, if I am not wrong, the fee of buy and sell are the same, for more details, you may want to check out the link here : http://www.maybank-ke.com.sg/latest-offerings/listing/sgd0-commission-with-monthly-investment-plan/

      Delete
  6. Hi.
    I'm currently doing a school project for OCBC BCIP and I just want to ask your opinion as an investor.
    If OCBC were to lower its fees & charges, would you be more compelled to invest? What kind of changes would make BCIP more appealing to you?

    ReplyDelete
    Replies
    1. I don't have a fixed amount of charges in mind but I guess just need to ensure that it is competitive enough among the players.

      Delete

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