Is it advisable to buy unit trusts through OCBC BCIP if I cannot afford to buy one lot of shares? - Seedly
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Asked 2d ago

Is it advisable to buy unit trusts through OCBC BCIP if I cannot afford to buy one lot of shares?

I’m young and I can’t afford to buy 1 lot of shares. Do you think it’s advisable to buy unit trusts through OCBC’s BCIP?

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    Personally, if you're young, I'd advise you to invest in US/Global markets instead. SGX is rather limiting in growth imo. Historically, US Indices have done well since the 1900s, returning approx 9.8% per annum. Global indices do better in some decades and worse in some, but generally they follow each other since the US markets form a large portion of the world's economy.

    Some I would consider are:

    • S&P 500 ETFs: CSPX (LSE), IVV/VOO (US)

    • Global Index: VWRA/IWDA (LSE)

    • Global Ex US: VEU/VXUS (US)

    Moreover, such ETFs do not have minimum lot sizes, meaning you can buy 1 share or 2 shares if you so choose to do so. Do note that naturally, buying more shares will reduce the impact of the comms on your cost price.

    You can check out more on Index Investing on this post I wrote!

    If you're uncertain on which broker to choose, I would advise Tiger Brokers as a good starting broker. Low commissions, relatively easy to use and has access to US, SG and HK markets. If you wish to look at other brokers, you can also check out my comparison here!

    Hope this helps!​​​

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    Thank You!
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    Do broaden your search to consider other platforms if you want to do RSPs. There are options like RSPs by FSMOne, POEMs or robo-advisors etc.

    Any specific reason on choosing UT via BCIP?

    Please do share so we can understand you better.

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    Thank You!
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