Anonymous

20 Mar 2020

∙

If I put money in syfe, stashaway and bought sti ETF. How does compounding interest work for them?

If say I put $1000 in each stashaway, syfe (reits) and sti etf. Scenario 1 is that I stopped investing and left it for many many years. Scenario 2 is that I constantly put in money either by batches or monthly. How does compounding interest work in this scenario?

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Hariz Arthur Maloy

20 Mar 2020

Independent Financial Advisor at Promiseland Independent

There's no compound interest in equity investments because they don't pay any interest.

Only tools that pay interest, compounds. Like bank accounts, loans, insurance cash bonuses.

Equity investments have growth and dividends. And if you reinvest dividends you can consider that compounded growth, but that's not interest.

With equity investments, you buy low and sell high. And regular investments allow you to accumulate units or shares.

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I have $5k take home pay each month. Plan to allocate $1.5k to investments - already putting $200 in Stashaway and $300 in NIKKO STI ETF. Interested in Equities?

I’ve just started working and with that I also started learning how to invest. Currently, my plan is to RSP $100 into STI ETF, Stashaway and Syfe per month. Would that be a good starting point?

Should I put my money 50-50 into local ETFs (like STI ETF) and all world ETFs?

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Should I further diversify and start investing in Syfe Equity100 if I am already investing in STI ETF, 2 ARK ETFs and 2 Stashaway portfolios (12% & 36%)? How should I best allocate $1000 monthly?