facebookWhich is better - Buying from DBS Vickers STI ETF or from DBS funds STI ETF? - Seedly

Anonymous

18 Apr 2019

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General Investing

Which is better - Buying from DBS Vickers STI ETF or from DBS funds STI ETF?

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DBS Vickers is a brokerage accounts which requires you to open a CDP account in prder to purchase ETFs. When you set up your account, you will need to decide how much you want to invest in the STI ETF. Whereas if you buy from the DBS fund you will be adopting dollar-cost averaging investing through a regular savings plan. When you buy from the DBS funds, the bank will help you buy the shares with your chosen amount each month, in other words, you do not have ownership of the shares.

Investing in DBS Funds require a smaller starting capital and reduces the need to "time the market" to find the best time to invest. However this incures higher transaction fees. In the short run, dollar cost averaging dividends are lower than lump sum investing however the gains are averaged over time. For lump sum investing, it requires you to "time the market" to determine the best time to enter the market to maximize gains.

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