Hi, im confused how does OCBC blue chip investment work. Since it's a type of monthly savings plan, does that mean i only earn by dividend from the stocks bought?

I have been using BCIP since 2016.

Technically, for monthly investment of 200, the fees deducted is 5 dollars (there's an additional 37 cents fee for SRS). So for 200, you will get 97 shares, they deduct 5 dollars for fees, and refund 1 dollar to your bank account.

The 97 shares are held by ocbc in custody for you. You can perform instructions to sell those shares if you decide to, so that money deducted from your bank account merely goes towards the share purchase under your bcip account.

Its pretty visible in the online banking, and they will show your average cost and the latest market value.

Hi Anon, yes dividend is one way of earning from OCBC BCIP. Just like owning any stock, you also earn from any capital appreciation of the shares you hold.

Basically, there are 2 accounts involved:
1. Your savings account
2. Your BCIP account

Every month, the bank deducts $x amount from your savings account. A few days after that, your BCIP account will then have $x/($share price) units of shares, minus a small brokerage fee.

The overall value of your asset does not change, i.e. Deduct $x from your savings account but adding shares worth $x into your BCIP account.