Is it wise to buy DBS Blue Chip Stock via OCBC Blue Chip Investment Plan?
So I wanted to try investing in blue-chip stock through the OCBC Blue Chip Investment Plan since the fee I'll have to pay is 0.88% of the total investment. As I am a student, I planned to try only the minimum which is $100 per month. However, I noticed that DBS share price is more than $100/stock, so is it a bad idea to purchase their shares since I can only purchase 1 stock at most?
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Elijah Lee
09 Sep 2019
Senior Financial Services Manager at Phillip Securities (Jurong East)
Hi there. DBS is hovering around $24-$25 per share these days, so you will likely only be able to get 3-4 shares each time (factoring in the fees). What you really need to take note is that you will have slight difficult liquidating unit shares as shares are commonly traded in lots of 100.
Considering that you are a student, don't rush in. Take time to build up knowledge so that you will be able to decide when and how to invest your (currently) limited resources. Grow your human capital too so that you can increase your earning power which will enable you to make a much bigger quantum of investments in order to reduce the costs of investment.
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Since you can gain from Dollar-cost averaging over time, while per month you will get 4-5 shares, over time this will accumulate and you will enjoy dividends from the stock too.
Most popular for Blue Chip Investment Plan is the AM Nikko basket of shares that covers a larger range to diversify. Recommendations on Buy Hold status for companies by OCBC Wealth panel can be viewed on the website: https://www.frankbyocbc.com/products/investment...
OCBC holds Young Investor Programme seminars which are free to attend to learn about investing with experts too :)