Asked by Anonymous
Asked on 18 Dec 2018
New to investing, but am keen to buy some tech funds
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.
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.