18 Aug 2020
How does everyone think about the ETF STI these days? Every month, i throw in $100 through DBS to buy it. However i heard the price is very high nowadays? Is it still worth it to buy into the STI? ?
If yes, is there actually an optimal amount? I feel that $100 per month might be quite worthless. How about $1000?
Hi how long have you been investing? Because the average for the past 6 months isnt as high as it is now. So if you actually go to the DBS website and view your ETF, you should see an 'Unrealised profit' which means that you are actually making money.
As for the amount per month, i would say maybe around $200 to $300? I know it seems like very little and insignificant but it's a monthly basis so the amount would add up after a long time.
It doesn't make sense for you to do $1000 per month unless you are earning more than $4000 because its not sustainable. Investing shouldnt take up too much of your monthly salary. You should continue saving and keep spare cash incase for a rainy day. (You dont want the situation whereby the market is bad and you need money thus selling your etfs at a loss)
Lastly to end off, NEVER SELL YOUR ETF/STOCKS if it's a loss. Just hold it and wait for it to recover. If you do your DCA diligently (monthly) you should make a profit even when the market is bad (because you will average down your cost and have a comeback when it rises)
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If you are going to put in $100 every month, it does not matter if the price is high. Over time, the cost of the units purchased will be averaged out. Time in the market is better than timing the market.
If you are doing it via DBS, the money will be deducted on 15th of each month.
Your purchase price will be based on the average subscription price on the business day after your account is debited, or such other day determined by the Bank in good faith and in a commercially reasonable manner. (Extracted from DBS Website)
For monthly amount >$500, you might want to consider OCBC blue chip as buying fees will be lower compared with DBS
For selling, charges is applicable for OCBC Blue chip but there is no charge for DBS Invest Saver
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