Asked by Anonymous

Is Fundsupermart or Poems better for long term investments of trust funds?

New to investing, but am keen to buy some tech funds

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  • Cheng You Yi
    Cheng You Yi
    7 Answers, 13 Upvotes
    Answered on 20 Dec 2018

    Hi, are you looking into ETFs (echange traded funds) or unit trust/mutual funds. For Unit trust funds, POEMs has zero sales and platform fees.

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  • Lok Yang Teng
    Lok Yang Teng
    307 Answers, 415 Upvotes
    Answered on 20 Dec 2018

    Edit: This comparison is for ETFs

    To compare apples with apples, we'll use SGD 100 monthly, investing in SGX. Since there are many sucessive purchases over long time, small charges including management cost can accumulate into large sum.

    For POEMS, you'll have to pay 0.12% for each purchase and 0.0075% to keep SGX's lights on. In total, charges will be 0.1275% + GST. For FSM, trading fee is 0.08% and similarly 0.0075% for SGX Access Fee. This will bring total to 0.0875% + GST. Management cost wise, FSM is cheaper. As you get more proficient and thinking of venturing into other markets, you'll have to make the comparison again, taking into account the same market/fund, currency charges, coparate action fee and dividend fee.

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    • John Doe
      For ETF. FSM would be cheaper. There is no guarantee though FSM will not start charging platform fee for ETF in future. Remember also POEMS has been around longer and trust is with CDP. Safer compared to FSM esp. with srs accounts
      23 Dec 2018