The recent launch of OCBC’s Blue Chip Investment Plan (BCIP) has attracted a lot of attention in the market. Financial institutions are more aggressive to accumulate their AUM (asset under management) nowadays as the investment business has suffered since financial crisis.
POSB has launched their own POSB Invest Saver Plan, which “Invests in Singapore blue-chip stocks from just S$100 a month – with a fee from as low as S$1!”
What is POSB Invest-Saver?
It is a Regular Savings Plan (“RSP”) that allows you to invest via a GIRO arrangement on a monthly basis.
POSB Invest-Saver is designed for those who:
- may not have a huge capital
- want to potentially grow their long-term savings
- are looking to diversify their portfolio
What will you be investing in?
Through POSB Invest-Saver, you will be investing into the Nikko AM Singapore STI Exchange Traded Fund (“ETF”). When you buy units of this ETF, you are investing into Singapore’s top 30 companies (based on market capitalization) including Singapore Exchange, Singapore Airlines and Singapore Press Holdings (subject to half-yearly review). Collectively, they are known as Singapore’s blue-chip companies and their performance is tracked by the Straits Times Index (STI)
Fees and Charges
- Low sales charge of 1% per transaction with a minimum investment sum of S$100
- No fees for selling the units (this may be subjected to change)
I feel the offer is quite reasonable as you do not have to pay broker fee to buy ETF and you are not subject to minimum commission of $5 like OCBC’s plan.
ETF, which has already gained popularity in other parts of the world, never really took off in Singapore. It is largely due to the fact of high commission rate and lack of public education. Brokers do not like to promote ETF either as it will likely hit their profits.
Anyway, applause for the progress and glad to see the local financial institutions finally want to catch up. More information of the product can be found here.