facebookI'm new to investing and I want to kickstart my investment journey. I’m planning to invest in ETFs through RSP since I have little capital. Which RSP is the best? - Seedly

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Anonymous

21 Jul 2020

General Investing

I'm new to investing and I want to kickstart my investment journey. I’m planning to invest in ETFs through RSP since I have little capital. Which RSP is the best?

Can you share the RSP you are using or have used previously? Any recommendations on how I should allocate my money?

Discussion (6)

What are your thoughts?

Tan Wei Ming

Tan Wei Ming

09 Jul 2020

Level 10·Founder and Writer at Frugal Youth Invests

There are few reasons why I decided to use FSMOne’s ETF RSP instead of kristal.AI even though the latter is free for the first US$50k are as follows. 

Firstly, you can buy fractional shares using FSMOne’s ETF RSP but not kristal.AI. With FSMOne’s ETF RSP, you can buy into VOO with just $50. On the other hand, kristal.AI requires a minimum amount of 1 share to start their Systematic Investment Plan. What this means is that if VOO is getting more expensive every month, with FSMOne’s ETF RSP you will receive less fractional shares while you have to fork out more capital to own that minimum 1 share of VOO with kristal.AI

Secondly, even though kristal.AI offers zero commission for the first US$50k which can be quite enticing for many, their commission structure is different from each other. kristal.AI charges investors based on AUM while FSMOne charges based on trades commission. In the long run, once US$50k is hit, kristal.AI will be more expensive as one has to pay more in fees when their portfolio gets bigger. On the other hand, for FSMOne, since investors are charged by the order amount, the cost will be cheaper in terms of percentage over the total capital outlay in the long run. 

You might argue that one should buy into kristal.AI until it reaches US$50k and switch to other brokerages to continue their RSP but I believe in the long run and the convenience that one will have if they buy using FSMOne ETF RSP from the start. The deal breaker for myself is the minimum share of 1 for using kristal.AI’s SIP in the sense that I have to fork out more capital if the share price goes up. I would rather own less of the shares than to fork out more cash.

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Lim Qin Da

Lim Qin Da

09 Jul 2020

Level 8·Business Administration & Analytics at National University of Singapore

Great that you are starting your investment journey through RSP! The Regular Shares Savings Plan (RSP) has been a popular method brought up by the community as you will be able to start investing without a large sum of capital and time. Another benefit of RSP is that it allows you to Dollar-Cost Average (DCA) your investment monthly.

Information accurate as of 9 Jul 2020.

With as little as $50 to $100 a month, any Singaporean with little to no knowledge of investing can take their first baby steps on their investment journey through RSP. The best RSP would be the cheapest one because this way you get to keep as much of your dividends as possible.

TL;DR: Generally, if you are investing in small amounts every month, FSMOne Regular Savings Plan is the cheapest one until you surpass $1.3k per month, where its percentage fee would be charged instead of the minimum fee of $1 (more details below).
If you wish to have access to STI component stocks, OCBC Blue Chip Investment Plan would be the cheapest option, whereas PhillipCapital Share Builders Plan offers the greatest number of counters for STI component stocks.

DBS Invest Saver

  1. Minimum Amount (Monthly)
  • $100
  1. Fees
  • No platform fees

  • No management fees

  1. Sales Charges
  • 0.5% for SGD Fixed Income ETFs

  • 0.82% for STI ETF and REIT ETF

  1. ETFs you can invest in
  • 4 ETFs listed on SGX

  • ABF Singapore Bond Index Fund

  • Nikko AM SGD Investment Grade Corporate Bond ETF

  • Nikko AM STI ETF

  • Nikko AM-StraitsTrading Asia ex Japan REIT ETF

  1. Dividends Crediting
  • DBS/POSB Debiting Account

FSMOne Regular Savings Plan (Reviews)

  1. Minimum Amount (Monthly)
  • $50
  1. Fees
  • No platform fees

  • No management fees

  1. Sales Charges
  • 0.08% or minimum $1 (whichever is higher)
  1. Other Charges
  • Respective exchange, dividend handling and corporate action fees apply on each transaction (if applicable)
  1. ETFs you can invest in
  • 49 ETFs listed on SG, HK and US Stock Exchanges

  • Nikko AM STI ETF

  • Nikko AM-StraitsTrading Asia ex Japan REIT ETF

  • Vanguard S&P 500 ETF

  • iShares Core S&P 500 ETF

  • Vanguard Total World Stock Index Fund ETF

  • Many more…

  1. Dividends Crediting
  • FSM Cash Account

OCBC Blue Chip Investment Plan

  1. Minimum Amount (Monthly)
  • $100
  1. Fees
  • No platform fees

  • No management fees

  1. Sales Charges
  • 0.88% with initial investment of up to $500 per counter for new BCIP customers who are less than 30 years old

  • 0.3% of total investment amount or $5 per counter (whichever is higher)

  1. Other Charges
  • Additional processing fee for SRS: $0.37 per counter
  1. ETFs you can invest in
  • 3 ETFs listed on SGX

  • Lion-Phillip S-REIT ETF

  • Nikko AM SGD Investment Grade Corporate Bond ETF

  • Nikko AM STI ETF

  1. Dividends Crediting
  • Cash Dividends: OCBC Deposit Account or OCBC SRS Account

  • Stock Dividends or Bonus Issues: Safe-kept with OCBC Securities Pte Ltd

  1. Others
  • STI Component Stocks: 17 counters

PhillipCapital Share Builders Plan (Reviews)

  1. Minimum Amount (Monthly)
  • $100
  1. Fees
  • No platform fees

  • No management fees

  1. Sales Charges
  • Invest less than $1k with 2 or less counters: $6

  • Invest less than $1k with 3 or more counters: $10

  • Invest more than $1k: 0.2% or $10 (whichever is higher)

  1. ETFs you can invest in
  • 5 ETFs listed on SGX

  • Phillip SING Income ETF

  • SPDR STI ETF

  • Lion-Phillip S-REIT ETF

  • Nikko AM SGD Investment Grade Corporate Bond ETF

  • ABF Singapore Bond Index Fund

  1. Dividends Crediting
  • Paid out in cash or reinvested into preferred counter
  1. Others
  • STI Component Stocks: 34 counters

Currently, I am using FSMOne Regular Savings Plan and I’ve put some money in Vanguard S&P 500 ETF (VOO) and Nikko AM-StraitsTrading Asia ex Japan REIT ETF (CFA). Been using their platform for a while and it’s quite user friendly! I also like the fact that I can invest in US ETFs from as low as $50 a month, so it’s a great platform for people who want to start small but have overseas exposure. What about you? Feel free to share your thoughts and tips!

References were made to a Seedly Article written in Jan 2020. Click here to read more!

Maisul

Maisul

11 Jul 2020

Level 9·Youtuber at Google (Channel : Say Do Invest)

You can also consider buying n ETF via a broker.

Ticker symbol : IVV / VOO

The above ETF tracks t...

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