Is it worth putting them into blue chip like DBS and monitor for shares growth and sell off? For blue chip investment, best to do direct or go through broker? - Seedly


Blue Chips


Asked by Anonymous

Asked on 07 May 2019

Is it worth putting them into blue chip like DBS and monitor for shares growth and sell off? For blue chip investment, best to do direct or go through broker?

I'm a newbie in investment, was approached by agent to buy weath multiplier savings plan (5y premium term + 15y wait, iir abt 4%). Was thinking this waiting time is too long. I am looking to set aside 50-60k for investment, medium risk appetite, and hoping to look at favourable returns in short term (2-5y).


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Mabelline Tan
Mabelline Tan


Level 3. Wonderkid
Answered on 14 May 2019

Perhaps, try Stashaway app/website where it is geared towards investment. It is MAS-regulated. The investment picks they recommend are ETFs which have a lower expense ratio, so meaning you don't pay as much as a sales charge in a unit trust.

Added, please set aside 6-12 months emergency funds before you start to invest.



Hey there, for starters I hope you got your insurance planning and emergency fund set up before going into saving or investing.

Anw, savings and investment are two different categories. Returns on any kind of saving instruments are definitely projected to be lower than investment returns.

And all financial portfolio should have both instruments in it for different purpose. Which is also a basic form risk management

It seems to me you are looking to invest and not to save. Before you invest, doesn’t matter blue chips or not, the first question you must ask yourself is what is your desired outcome?

Depending on your desired outcome, your investment strategy will be different, your portfolio asset allocation will also be different.

Favourable returns is a vague term. What is favourable to you might not be for me. Put a number to it. If you are looking for 20% gain on your capital in the next 5 years, your investment only needs to do 4% compounded yearly for 5 years to get your 20% gain. Hence, Put a number to it, it will help you to decide and plan better.

Why 2 to 5 years? (Age factor? Life stages factor?) Why not stay invested for a longer time and expose yourself to reinvestment risk with your 50 to 60k?

When it comes to investing, always look at how the investment fit into your portfolio and your portfolio strategy.



Since you are new, here's my suggestion:

1) Use 40k to purchase 2/3 different blue chip stocks for diversification. Pick those you are familiar with (eg. DBS, whose business model you can understand) and buy if you think the business will do well in the next 2-5years. Unless you have alot of time in the market, your best bet is to buy stocks you are familiar with. Just like how Warren Buffett drinks Coke & buys Coca Cola.

2) Since you have a 2-5yr horizon, don't go monitoring the share price. Rather, think about which companies you think will perform well in that 2-5years. Just buy and hold. The reason I dont encourage frequent monitoring on your end is because your buy/sell decisions will likely to be influenced by media & even comments in forums, which may not be ideal. Unless you have lots of time to read the market, I would suggest the earlier. Hold even during bad times, understanding its meant to perform in 2-5years. Most new investors make the mistake of selling off at a loss because lf negative news in the market. Most blue chips stocks should be able to give you okay returns given that timeline. But if you are looking at effeciency and optimising your stock buy (eg. compare valuations), I suggest to speak to an adviser.

3) Leave the other 10k in cash. Looming round 2 of US China trade war is coming. The last trade war saw markets dipping 20%. When something like that happens, utilise this 10k to look for value buys.

4) Put 5-10k with an adviser. Sound his strategy out. There will definitely be fees, but it will help you with your own investing. Its much cheaper to learn this way than to (1) lose money in the market (2) pay for expensive courses. Of course, that being said, its not easy to find a good one - look for someone who gives you clarity in his investment strategy not a product pusher.

Good luck.


Jim Ng
Jim Ng
Top Contributor

Top Contributor (Nov)

Level 5. Genius
Updated on 07 Jun 2019

Hi, if I were you, I'll stay away from the endowment plan.

This is why:

  1. The returns from the endowment plans isn't amazing, and it locks your funds up for such a long period of time.

  2. It conforms you to continue paying during the premium term, even if you are out of a job or you have an emergency that requires you to immediately cash out all of your money.

  3. The endowment plan likely has an allocation of 70% fixed income instruments and 30% equity. Heck, why not skip through the agent's commissions that goes through the manager, the director and the group ditector, the company management fee, etc etc, and do it yourself?

In conclusion, you should go ahead and invest yourself in blue chips you are comfortable with.

I'd suggest if you know what you want to buy, just go direct and invest through any of the brokers like DBS Vickers and UOB Kay Hian etc.

All the best to you for your investment journey.


1 comment

Brandan Chen
Brandan Chen

08 May 2019

I do agree with your views about perhaps steering away from endowment but endowments are still useful for certain situations. However for point 2, there are some endowment plans which allow you to stop paying premiums for a year or 2 should you be jobless or in a dire financial situation.
Luke Ho
Luke Ho, Money Maverick at Money Maverick


Level 6. Master
Answered on 09 May 2019

If you're a newbie in investments, it's terrible advice generally to tell somebody to go and do it themselves - especially when you've blatantly put out that you want favorable returns in the short term (2-5 years).

You can really only near-guarantee that with a high probability of success not unlike that of a portfolio constructed by an insurance company. If you insist on individual stocks - you're going to be very disappointed.

I'm going to throw out a couple of options that are slightly more specific in advice

1) If you insist on doing it yourself, be prepared to lose some or all of that money. Investing is a contact sport. You'll be better for it, but you will take losses.

2) If you want to get a portfolio for that 2 - 5 year period - most millenials are alike and I have milennial clients. It's undoubtedly got to do with house, marriage, reno...there are more practical ways to achieve better interest than stock investing. Talk to a professional.

3) Wealth Multiplier is much more a savings plan than investment plan anyway. It is for the conservative long term, and it has its benefits as I wrote about here: But since you need liquidity, it is completely inappropriate, so don't get it.

In fact, if you TOLD the FA that you needed savings for your purpose and they STILL recommended that plan, just smack them in the face.

4) You may want to go through a broker or opt for non-stocks such as SSB or P2P, depending on what kind of risks you're willing to take. Either will set you for a positive short term outcome. IF you're not sure, again, my door is open.


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Alan Kor
Alan Kor
Top Contributor

Top Contributor (Jan)

Level 5. Genius
Answered on 08 May 2019

Do not mix insurance with investment, period.