facebookHi Everyone! I am completely new to investments, but I would like to start with $200/mth, what are some tips or tutorials for me to start from? - Seedly

Poh Poh

05 Mar 2020

āˆ™

General Investing

Hi Everyone! I am completely new to investments, but I would like to start with $200/mth, what are some tips or tutorials for me to start from?

I am currently serving NS and intend to start on some small investment for about $200 per month! Came across different RSS plans in SG like the OCBC Blue Chip Investment Plan. I also went to look at different counters in Singapore but not sure which counters to start with. Anyone have any tips or tutorials for me to start from? Appreciate all your kind advice!šŸ˜€

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First of all great to take the first step of courage!
The thought of losing money can be daunting when you are new and inexperienced.

Perhaps start first by:
1) deciding your risk profile of how much heartache you can take - would a +/- 10%-30% +/- 4-8% or +/- 2-3% aggressive, moderate, conservative- this will kind of point you to look at investing in unit trusts or robo portfolios of foreign company stocks that can yield high returns (but also swing with market sentiment) or more mixed asset unit trusts with mix of bonds and stocks) or local blue chip etfs like OCBC blue chip that is generally stable and more dividend yielding

2) while you are green at investing, investing in companies or markets or industries you are more knowledgeable about in terms of believing they will grow in next 5-10 yrs.

For me as a novice too, I picked Unit trust baskets of rising tech companies globally like alibaba facebook netflix jd.com (OCBC Lion Global innovation fund) and also some blue chip dividend stocks

First look for that plan with the lowest (total) annual fees,

then look which one allows the cheapest passive indexing ETF trading option.

Look for large and cheapest ETFs (world, and U.S. exposure, like VOO or VVI),

but have patience (more than 10 years required to be successful).

The SGX listed ETFs have higer fees than U.S. or Europe domiciled, try the latter two.

Avoid SWAP based ETFs (like f.ex. XTrackers uses), they have counterparty default risk,

the better method is to only buy 'physically replicated' ETFs.

Avoid mutual funds / unit trusts completely.

Wong Ming Yao

06 Dec 2019

Product and Community Associate at 8VIC Global Pte Ltd

Hi, it's great that you have the idea to start investing when you are in NS! That's an early headstart comparing to many people!

I'm a student in NUS now and I only have the idea of financial freedom after I ORD, before entering University. Regretted that I did not save up every penny I had and invest in knowledge during NS.

My advise to you as an NSF is to save as much as you can (reduce nights out spending, eat more at cookhouse), then spend your time meaningfully by reading up more Investments/Financial Education book: Rich Dad Poor Dad, One up Wall Street, 5 Rules of Successful Stocks Investing.

While you're 'upgrading' yourself, you can consider parking your money with the SSB as they at least can reduce the inflation effects on your liquid cash!

For beginners, I always advocate the usage of STI ETF because it is dviersified across 30 singapore companies of various industries. You obtain the beneifts of diversification in one counter. Here is my write up on it

http://investmoolah.blogspot.com/2015/09/why-st...

Pang Zhe Liang

06 Dec 2019

Fee-Based Financial Advisory Manager at Financial Alliance Pte Ltd (IFA Firm)

Before you start investing, it will be best to understand your objective. Here are some questions to...

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