Hi I’m a fresh graduate that has just started working. Has just made a lump sum investment on NIKKO STI ETF ($7k) at $2.6 per share and going to DCA at $300 monthly. Anyone has advice on Nikko AM STI ETF Investing Strategy? - Seedly
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Anonymous

Asked on 04 Aug 2020

Hi I’m a fresh graduate that has just started working. Has just made a lump sum investment on NIKKO STI ETF ($7k) at $2.6 per share and going to DCA at $300 monthly. Anyone has advice on Nikko AM STI ETF Investing Strategy?

Assuming I’m risk adverse, is this strategy better than short term endowment plans (at 2%) or high interest savings account. P.S. I’m using DBS vickers as well as DBS Regular Savings Plan

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Kim Hwee
Kim Hwee
Level 4. Prodigy
Answered on 04 Aug 2020

Hello, the STI ETF is definitely a good place to start if this is your first foray into investing. Your strategy of $300 monthly DCA through the DBS InvestSaver might not be the most cost effective in terms of fees but that is subject to personal preference as well.

As the STI ETF only consists shares of 30 companies locally and is heavily weighted towards Financials and Telecoms (not much room for growth), you may want to consider deploying your $300 DCA into global equities instead which can be easily accessed through Roboadvisors like Stashaway, Syfe, etc. at low costs as well.

Hope this helps!

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Aug)

Level 9. God of Wisdom
Answered on 04 Aug 2020

STI is an inferior investment as to capital appreciation.

what else to avoid, here:

https://seedly.sg/questions/what-is-your-general-investing-philosophy-strategy

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Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 04 Aug 2020

Avoid STI at all cost. Paltry performance as an index investment tool

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X_Y
Level 5. Genius
Answered on 04 Aug 2020

I have done up some charts on this fund that can help with your capital allocation. The charts aim to answer the following questions:

  • How has the NAV been trending since inception?

  • How has the fund been performing quarter on quarter since inception?

  • How has the dividend been trending since inception?

  • How has the fund size been growing?

  • What are your probabilities to make/lose money?

  • What are your average (+) and (-) returns?

  • Is your fund outperforming or underperforming the benchmark? (For Actively Managed Funds)

Link: https://dl.orangedox.com/fund-analysis-pdfs

File Name: NIKKO AM SINGAPORE STI ETF (DBSSTI SP Equity)_update_040820​​​

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X_Y

05 Aug 2020

For quarter on quarter (+) returns, take all the past historical positive quarters and find the average. Same thing for average (-) returns. I have access to this data as I work in the financial industry. However, you can get it from https://sg.finance.yahoo.com/quote/G3B.SI/history/?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAABtto4bRDAWFQSpTU0_EjohxmNI9F_X9XdS7pqbb7qvWZWBTfjwsDmxxAdxmm1-GcVx4rlTQi4okaWCAHm0jdBbXSgk4YaKwUHnXalKSx-Fx4BhGyrpnigGAGctMCEXjI49D-npKGE9QKcUisxoWcNfXsoULvY46L5X_H5VtazmE. I can send you my spreadsheet if you want, then you can copy and paste the data accordingly.
Ng Shao Yan
Ng Shao Yan

05 Aug 2020

Thank You! Will PM you through the email listed
Thank You!
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