I am a young adult (27) hoping to invest in US Market - should I be doing DCA monthly to US ETFs (eg FSMone), or pick "safe stocks" like Walt Disney, Amazon etc for Growth/Capital Gain potential? - Seedly
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Anonymous

Asked 2w ago

I am a young adult (27) hoping to invest in US Market - should I be doing DCA monthly to US ETFs (eg FSMone), or pick "safe stocks" like Walt Disney, Amazon etc for Growth/Capital Gain potential?

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Sharon
Sharon
Level 6. Master
Answered 2w ago

Behind every stock, there is a company and its business environment is constantly changing due to competition, macro outlook, customers behaviours, government intervention, etc.

Hence, that said there is no "safe stocks".

Remember that police banner around our neighbourhoods that say "Low crime doesn't mean no crime"?

Lower risk of insolvency or business going down hill doesn't mean no risk. You will need to monitor these stocks too.

If you feel confident in learning and analysing about them, you can try your hands in stocks. Otherwise, DCA in US ETFs (you may want to go for Ireland-domiciled ones to have a lower witholding tax) with robo-advisors (or FSMOne) can be a viable option.

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You can separate into 2 parts.

1 part for DCA into S&P500 through FSMOne, because DCA through brokerage account such as DBS Vicker, Saxo etc will be too expensive, so RSP is your best tool for that.

The 2nd part you can save as your warchest. Say, you say $500 a month for 6 months, and after 6 months, you invest the $3,000 in a growth stock that you like. You shouldn't DCA here because the commission/ fee will eat into your return. But please do intensive research on the company you want to buy because you do not want to just dump your 6 months worth of warchest into a random company you heard from the taxi uncle.

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Frankie Rappaport
Frankie Rappaport
Top Contributor

Top Contributor (Jun)

Level 9. God of Wisdom
Answered 2w ago

There are no safe stocks, which is exactly the point why you should look for

passive stock indexing ETFs. Yes, with a cheap online broker You can DCA all DIY.

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

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Tan Wei Ming
Tan Wei Ming
Level 6. Master
Answered 2w ago

My strategy when I started venturing into US market is to first DCA into S&P500 ETF for instant diversification to the US market.

Next, I will look for individual companies to invest in when I feel confident and experienced in the market.

So I guess you can do the use the strategy as I do.

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Tan Wei Ming
Tan Wei Ming

2w ago

Yes. In a whole, Berkshire has been underperforming S&P500 for 5 years or so. Probably because he doesnt hold a lot of tech stocks. Was thinking of the possibility of buying Berkshire but have to think twice. Yes it is for value play but to depend on capital appreciation, S&P500 will do the job.
Frankie Rappaport
Frankie Rappaport

1w ago

True