Given the current COVID-19 situation and DPM speech today, is it a Yay or Nay for STI ETF (RSS)? - Seedly
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Darren Lee

Asked on 26 Mar 2020

Given the current COVID-19 situation and DPM speech today, is it a Yay or Nay for STI ETF (RSS)?

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?

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Charmaine Chua
Charmaine Chua, Personal Finance Geek at My Own Life
Level 4. Prodigy
Answered on 27 Mar 2020

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!

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Darren Lee

27 Mar 2020

In that case, I should not suspend my RSS and continue buying in monthly? Okie thank you! :)
Charmaine Chua
Charmaine Chua

27 Mar 2020

Stay strong! believe in your choices :)
Thank You!
Can you clarify
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M
Mandino
Level 4. Prodigy
Answered on 03 Apr 2020

Diversity, diversity, diversity. If you're willing to speculate and take a bet. Be ready to lose all that money. Have a great day! Cheers!

PM really going to make a speech later also! :O

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Updated on 04 Apr 2020

STI is generally an instrument not well diversified, VT or VOO

passive indexing funds did (will do???) much better over very

long term.

Take a look to the trailing (but dividends not included) 10 year performances

of STI versus SP500 versus global index:

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