What can I do now that Maybank Kim Eng is stopping Monthly Investment Plan(MIP)? Any other alternative out there that I can consider? also, what will happen to my odd lots of shares if I do not sell it off? - Seedly
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Maybank Kim Eng

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Anonymous

Asked on 04 Jun 2019

What can I do now that Maybank Kim Eng is stopping Monthly Investment Plan(MIP)? Any other alternative out there that I can consider? also, what will happen to my odd lots of shares if I do not sell it off?

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Updated on 07 Jun 2019

Unfortunately there is no viable alternative currently, to me, for MIP. Not with the breadth of counters available and at their commission structure. Only other way I see is to continue funding your prefunded account and buying into the counters manually. I'm personally considering this option once MIP ends, since the prefunded commission rates are cheaper as compared to non prefunded account rates.

The shares you purchased through MIP will remain in your prefunded account. There is a promotional rate until end of the year to sell off the odd lot shares at 'normal' online brokerage commission rates. It will be 40 dollars otherwise if you contact your broker to sell off the odd shares.

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Question Poster

05 Jun 2019

Thank you for the detailed response! I share similar thoughts on this. I have looked up on the other MIP plans other places offers but plans like DBS InvestSaver actually have minimal counter options and POEMS have commission and dividends charges which I strongly do not favour. Buying into the counters manually is a viable option but it would significantly add up to my transaction cost (1% to min $10 each counter) since I was buying into 3 counters monthly. I am in a dilemma as I am trying to avoid alterations to my DCA flow. Perhaps this is a highly ignorant question, but would there be any issues if I were to just keep the odd lot of shares and not sell it? What is the rational for clearing the odd lot of shares? Thank you..
Jonathan Chia Guangrong
Jonathan Chia Guangrong

05 Jun 2019

Nope there is nothing wrong with keeping the odd lot shares in your prefunded account. It's basically a custodian account in your name holding the shares. Some people just don't like the idea of odd lots I guess as it may be more difficult to sell them off. Sold off my odd lot mapletree commercial through my broker and it was a smooth transaction. From what my broker tells me, I'll need to terminate the giro facility else the funds will still be wired into the prefunded account every month. Perhaps you can do leave the giro in place and plan your dca around the 'new' commission structure, such as buying manually every quarter or every few months instead of every month. Or you can think of it as a cash warchest to be activated when there is a depression in the share price
Cedric Jamie Soh
Cedric Jamie Soh, Director at Seniorcare.com.sg
Level 8. Wizard
Updated on 05 Jun 2019

There are many other alternatives:-

1) POSB Invest Saver - if you doing monthly $100 to $500

2) OCBC Monthly Blue Chip Investment Plan

3) Philips Capital ShareBuilders

4) Standard Chartered Bank-

5) Robo advisers also may have monthly plans, go check out StashAway, MoneyOwl, AutoWealth etc etc. Check the Seedly article https://blog.seedly.sg/singapore-robo-advisor-investment-comparison/

POSB Invest Saver is easy to get started with the lowest fee for up to $500 per month. ($4 if i remember correctly)

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Jessica Ann Lee
Jessica Ann Lee
Level 4. Prodigy
Answered on 05 Jun 2019

POSB Invest Saver is really cheap at about $4 for $300 per month regular investment.

If you are regularly investing $100 to $500 per month, then go for POSB Invest Saver. And maintain for years, you will retire happily.

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Billy Ko
Billy Ko
Level 7. Grand Master
Answered on 19 Jan 2020

Are you looking to RSP for stocks? If you're just looking at ETFs then other banks and brokerage firms do offer these services. But if you are looking into stocks, Philips has a similar service called sharebuilder.

Odd lots-wise, you can consider buying more to make it into a whole number before selling off or just leaving it there to collect dividends and maybe apply rights issue if the company does introduce one

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Choon Yuan Chan
Choon Yuan Chan
Level 9. God of Wisdom
Updated on 19 Jan 2020

There are other alternatives such as;

1) POSB Invest Saver - if you doing monthly $100 to $500

2) OCBC Monthly Blue Chip Investment Plan

You can also invest on SI ETF via standard Chartered online brokerage or DBS vickerss cash upfront.

For your odd lots, i will advise biting the bullet and sell them. There will be a $40 comission fee​​​

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Bjorn Ng
Bjorn Ng
Level 9. God of Wisdom
Answered on 19 Jan 2020

You can consider POSB Invest Saver, it works like the MIP as well. However, you can only buy STI ETF or ABF SG bonds - if that was what you were using initially, that would be a good option.

For odd lots, nothing will happen if you don't sell it off.. Only thing is if you are OCD, then that will be a bit of an "eye-sore".

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Ericsson Ting
Ericsson Ting
Level 4. Prodigy
Answered on 04 Jun 2019

Hi yes,you can do it via posb invest saver

Summary: 1.investing $100-$500 per month use posb and Maybank 2.investing $500-$1000 per month use OCBC @3%,min $5 or Maybank @1%,min $5 3.investing $1000-$3332 per month use OCBC @0.3% ,min $5 4.investing $1000-$5000 per month Use standard chartered,@0.2, min 10

For monthly purchase of A35, there are only two options, standard chartered and posb

1.below 1k,use posb invest saver 2.above 1k,use standard chartered @0.2%,min $10

you can also read more about my posb invest saver updates at my blog :https://sonicericsg.blogspot.com/2019/03/post-80week-61learning-investingtrading.html

or if you need a guide on how to set up posb invest saver:https://sonicericsg.blogspot.com/2019/03/post-80week-61learning-investingtrading.html

Do note that posb invest saver only has sti ETF and abf bond,ocbc may be the choice for you if you are looking to dca into blue chips too

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Tan Wei Ming
Tan Wei Ming
Level 5. Genius
Answered on 04 Jun 2019

Depending on how much you are investing every month. For any amount that is $500, I will go for POSB InvestSaver.

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James Yeo
James Yeo, Founder at SmallCapAsia.com
Level 5. Genius
Answered on 04 Jun 2019

I think you still have other banks like posb invest saver to choose from.

Phillip also has their sharebuilder.

If not you can opt for mutual funds rsp every month? Go via fundsupermart.

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