Last Updated: 5th December 2016
This webpage aims to document the STI ETF Dollar Cost Averaging Performance which models after the Phillip Securities’ Share Builder Plan (SBP).
I have invested in this for a few years when I started out investing. I must say this is one of the most idiot-proof way of making returns. I do not need to spend a lot of time monitoring the market, nor I need to have the necessary knowledge and experience to beat the market. All I have to do is to set up a GIRO with Phillip and they will automatically take a fixed amount from my salary to invest in STI ETF. I invested through the 2008 Financial Crisis and I was able to make a double digit return while most people lost a lot of money. If you cannot beat the market, then join them and take market returns. FYI: STI ETF returned 9% per year in the first 10 years of their existence.
Details of this Model and Phillip SBP:
- The test started from Jan 2008 and we will continue to update the results on a monthly basis.
- Invest S$500 in STI ETF on a monthly basis (minimum S$100/mth)
- Phillip will buy as much shares as possible based on the investment amount (allows you to buy less than 1 lot)
- Purchase will be done on 18th of every month or the next market opening day
- Commission cost of S$7
- Shares are custodised by Phillip and not in your CDP account
- Dividends are automatically reinvested in the following month
- Phillip tax dividends at 1%
Below is the Google spreadsheet tracking the STI ETF SBP Performance.
Click here to download the tracker for your own use.
Who should invest this way?
- Investors with small capital who cannot start a proper investment portfolio.
- Investors who do not have the time and interest to do active investing.
- Investors who do not have the skills to pick stocks.
- Basically, investors who have better things to do than spending their time with the financial markets
How to set up your STI ETF Share Builder Plan?
You need a Phillip Securities account. And if you have one, you need to talk to your remisier or Phillip to open an SBP account.