facebookWhen I sell away my STI ETF units away, how much money do I redeem back? - Seedly

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Anonymous

16 Nov 2019

Stocks

When I sell away my STI ETF units away, how much money do I redeem back?

Do I regain all the capital that I have invested in so far?

Discussion (4)

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Elijah Lee

16 Nov 2019

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi anon,

ETF investments are never capital guaranteed, so you will get back an amount equal to:

Number of units x Price sold at - Fees incurred = Final amount received

This applies to shares, etc, as well, even if you are buying under DBS RSP.

I must emphasize again: ETFs are not capital guaranteed. The same goes for shares/UTs/REITs, etc.

It doesn't matter whether you go through DBS RSP, OCBC BCIP, buy on your own, do Stashaway or go through a robo advisor or a financial advisor to invest in these asset classes. Your capital is not guaranteed.

Hariz Arthur Maloy

16 Nov 2019

Independent Financial Advisor at Promiseland Independent

It's based on the current price.

If you bought ES3, it's currently $3.27. If you bought it exactly one year ago, it was $3.13. So you make 14 cents profit per share you bought or about +4.47%.

If you bought it on 15th July at it's peak of $3.43 and sell today at $3.27, you'd make a loss of 16 cents per share or about -4.66%.

So no, this investment is not capital guaranteed.

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