Asked on 26 Mar 2020
I have been in the RSS with POSB for the Nikko AM STI ET for about 17 months now. And given the situation now, would it good to continue with the RSS or should I suspend it? Will the drop widen my losses or will the I benefit from the DCA?
The key tenet of Dollar Cost Average (DCA) is discipline. Continue to be disciplined at your contributions and your efforts will yield you great returns in the future.
You continuing with the RSS will lower the average price of the STI ETF held. In the long run, this can help to increase your returns when the market recovers.
I am also assuming that you financial situation has not been negatively impacted by Covid-19. If it has, continuing it might not be viable option if you are unable to finance this investment.
But whatever you do, don't sell it and realise these paper losses unless its an emergency!
27 Mar 2020
STI is generally an instrument not well diversified, VT or VOO
passive indexing funds did (will do???) much better over very
Take a look to the trailing (but dividends not included) 10 year performances
of STI versus SP500 versus global index: