Advertisement
Anonymous
My average investment price is 3.01, but the last indicative price date is 2.61. I've been trying to pump in more money recently in order to lower my average investment price and hold just long enough for me to not make a loss. But I need to take this money out by May 2021 to pay off my tuition fee loan... Any suggestions on what I should do moving forward? I'm open to Robos/Stocks as well, but I'm quite the newbie so I haven't done my homework yet. Any suggestion is greatly appreciated!
4
Discussion (4)
Learn how to style your text
Reply
Save
Gideon Ng
13 Aug 2020
Blogger at FI Pharmacist
Hi Anon,
The STI ETF has very limited growth potential compared to other indexes like the S&P500. The STI ETF is heavily focused on banks, and these banks have very limited potential for growth. The main returns that you would expect to receive is via dividends.
For the S&P500, it is more focused on tech stocks. There is a huge growth potential for tech stocks. Moreover, most S&P500 companies are multinational companies which really shows the growth potential of these companies compared to those in Singapore.
It is definitely enticing to invest in foreign stocks. However, there are 2 main things you need to consider:
Foreign currency exchange risk
Taxes on returns (e.g. dividend withholding tax and estate tax)
These may eat into your returns, but overall I still feel that the gains you earn is able to negate such risks.
However, I strongly encourage you to read up on these indexes and stocks first before diving in. You should only invest in stocks / indexes that you are able to stomach the risks when investing in them.
Reply
Save
Write your thoughts
Related Articles
Related Posts
Related Products
4.5
960 Reviews
US$1
MINIMUM FEE
0.03% to 0.08%
TRADING FEES
Custodian
STOCK HOLDING TYPE
4.7
483 Reviews
4.9
127 Reviews
Related Posts
Advertisement
Your portfolio reflects your view of the future. A person holding predominantly Singapore based equities generally holds the belief that the returns from Singapore will exceed international equities.
Considering your short time frame, you need to manage your expectations and start doing your numbers and your financial goals. Manage your cash-flow, manage your expectations, and find a plan that suits your objectives.
Robos are good due to the low cost of entry and automated systems in place to ensure that risks are mitigated. It is a great starting point for many people who do not want the hassle of managing their investments. And one which I highly recommend to most people starting out their investment journey.
Follow me on YouTube here