Dear all. What are your thoughts on purchasing regular savings plan of individual shares only, like (dbs or Singtel shares) rather than RSP of STI ETF which is highly recommended on this platform?

I will say this is a debate between diversification and concentration.

Many knows that one should not put all your eggs in one basket.

Using a regular savings plan is a method for the average busy investor with a buy and forget strategy. It can also work for those that are not so knowledgeable about investment.

Buying just one stock of DBS or Singtel are fine, as they are strong companies. That would actually bring about another potential problem.

If you are not very knowledgeable, with a lot of money in 1 stock, you may not have the required mindset to hold.

The up side to this is that, your returns will very likely be higher.

Choosing the STI ETF is good as it provides a good amount of diversification across 30 companies. While still a bit too diversified for my liking, it has a good amount of concentration as well. So up-side is captured, down-side is protected.

If you are a sophisticated investor, concentration is more sensible. If you are not, or is very busy, diversification is better.

I'd go for the individual stocks rather than buying into the STI Etf, IF maybank ke's MIP programme is still available. This platform had the widest range of stocks available for doing on dca with a relatively low cost before it got discontinued and I was doing dca into mapletree reits.

Do reconsider if you intend to use ocbc's bcip due to the commission cost. If you are going with just 100 a month, it's 5% transactional cost.

Won't suggest doing dca on STI Etf as returns are rather flat across long term.