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Investment Platforms Singaporeans Can Use To Invest A Fixed Monthly Sum

Not having a lump sum of money is no excuse for not investing.


This article was first published on 20 February 2019 and contains links to our affiliate partners. DollarsAndSense receives a share of revenue from your sign-ups.

Adopting a disciplined approach to invest a fixed sum of our salary each month can help us start our investing journey and grow our wealth in the long term. Investing this way has two main benefits: 1) we do not time the market and 2) we are able to conveniently achieve dollar cost averaging (DCA).

Timing The Market

If we are trying to time the market, we will only invest when we think the markets are at a low or when they are going up. It’s virtually impossible for even the best fund managers and investors, let alone average investors like us, to determine when markets are at their troughs or when they are going to spike upwards.

By investing a fixed sum each month, we are just buying up high quality investments regardless of its price at any point in time.

Dollar Cost Averaging

When we invest a fixed sum of money each month, we buy up more of an asset when prices go down and less when prices go up. This way, our cost will amount to the average price of the asset.

Source: DollarsAndSense

There are several platforms in Singapore that allows us to achieve this in Singapore, we highlight 12 common platforms and its characteristics.

Regular Share Savings Plans

There are three Regular Share Savings (RSS) plan offered by brokerage in Singapore in partnership with SGX.

# 1 POSB Invest Saver/ DBS Invest Saver

The POSB Invest Saver (or DBS Invest Saver) is a Regular Shares Saving (RSS) plan that offers investors two main investments – the Nikko AM Singapore STI ETF and the ABF Singapore Bond Index Fund – which are both listed on the Singapore Exchange (SGX).

We can start investing as little as $100 each month to gain exposure to the broadest investments in Singapore via these investments. The Nikko AM Singapore STI ETF is an exchange traded fund (ETF) replicating Singapore Straits Times Index (STI), giving us exposure to the 30 largest and most liquid companies listed on SGX. The ABF Singapore Bond Index Fund comprises the highest quality bonds in Singapore, issued by the Singapore government and quasi-Singapore government entities.

Read Also: POSB Invest Saver: Here’s How You Automatically Invest In The Strongest Singapore Companies And Bonds Every Month

# 2 OCBC Blue Chip Investment Plan (BCIP)

The OCBC Blue Chip Investment Plan is also an RSS plan allowing investors to invest in 20 blue chip counters listed on SGX, including the Nikko AM Singapore STI ETF, and also individual stocks such as ComfortDelgro, Olam International and Wilmar International.

Read Also: Want To Invest On SGX? Here’s Why A Regular Shares Savings (RSS) Plan Is The Most Convenient Way To Get Started In 2019

Similar to other RSS plans, we only need to contribute $100 to start investing in some of the strongest stocks listed in Singapore.

# 3 Maybank Kim Eng Monthly Investment Plan (MIP)

The Maybank Kim Eng Monthly Investment Plan is another RSS plan that allows investors to invest in 54 counters listed on SGX from $100. As you can tell, the RSS plans offered by the different brokerage firms, give their investors different options in the types of investments they can make.

* From 12 June 2019, Maybank Kim Eng no longer offers its Monthly Investment Plan (MIP).

Read Also: Buying A New iPhone Every Year? Here’s How Much More You Will Have If You Invested The Money Instead

# 3 Phillip Share Builders Plan

Similar to the other RSS plans, the Phillip Share Builders Plan offers investments including 39 counters listed on SGX, from $100 a month.

Read Also: Buying A New iPhone Every Year? Here’s How Much More You Will Have If You Invested The Money Instead

Robo-Advisory Firms

Newer to the market, many robo-advisory firms offer investors a hands-off approach to long term investing via their digital platforms. They make use of algorithms to help investors invest their money, based on their risk tolerance levels, within the methodology of their platforms.

# 4 StashAway

StashAway primarily invests in exchange traded funds (ETFs) listed around the world to give investors greater diversification into equities, bonds, commodities and even convertible securities. It also does not have a minimum amount for investors to start using its platform.

Read Also: Step-By-Step Guide To Opening An Account And Investing Through Singapore-Based Robo-Advisor StashAway

StashAway uses a proprietary investment strategy based on theory of economic cycles, Economic Regime-based Asset Allocation, or ERAATM, enabling it to monitor economic trends and valuations to rebalance its customers asset allocation mix for the long-term.

If you’re keen to try out StashAway, it is currently offering 50% off its management fees for 6 months, for up to $50,000 in portfolio value. You can sign up here.

# 5 AutoWealth

Autowealth offers investors global exposure mainly through ETFs listed in the US. AutoWealth portfolios track the MSCI World Index and the Citigroup World Government Bond Index – which are transparent and global indexes respectively.

While AutoWealth has a minimum initial investment of $3,000, you can opt to go on a monthly investment plan as well.

If you’re interested to give AutoWealth a trybe sure to use the promo code ‘DollarsAndSense‘ to receive a $20 top-up into your account once you fund it with the $3,000 minimum.

# 6 Smartly

Smartly’s portfolio comprise a universe of over 20 exchange traded funds (ETFs), invested in equities, government bonds, corporate bonds, commodities and real estate. Investors can start investing on Smartly’s platform with a minimum deposit of $50, and can subsequently invest any amount they feel comfortable with.

Read Also: Robo Advisors in Singapore: What You Need To Know Before Investing

#7 Syfe

Syfe is a new Singapore-based robo-advisor that launched in July 2019. The cornerstone of their investment approach is a focus on managing risk, with the aim of attaining better risk-adjusted returns across all market conditions. You can fund your investment account in either SGD or USD, in either a lump sum or regular monthly payments. There are no minimum investment amounts and no minimum lock-in periods.

If you’re interested to give Syfe a try, there is a special offer for DollarsAndSense readers to receive bonuses added to their Syfe account:

$10 bonus for funding your Syfe account (any amount)

$50 bonus for investing more than $10,000 with Syfe

$100 bonus for investing more than $20,000 with Syfe

This bonus will be credited within 7 days after receiving your funds and invested together with your portfolio.To enjoy this promotion, you will need to maintain the portfolio with Syfe for at least 3 months. You can read more details on the promotion here.

Read Also: Investing With Syfe: 5 Things You Need To Know About Singapore’s Newest Robo-Advisor

Mutual Funds / Unit Trusts

There are also platforms that allow us to invest in mutual funds and unit trusts on a monthly basis. Typically, these are managed by an active fund manager seeking to beat the market. However, there are also certain mutual funds or unit trusts that are passive investments tracking indexes.

# 8 DBS Regular Savings Plan (RSP)

DBS Regular Savings Plan (RSP) allows us to invest in mutual funds with underlying assets in equity, bonds and alternative investments, as well as exchange traded funds (ETFs), on a monthly basis. We can start investing from as little as $100 a month.

On its platform, we can choose to invest using cash, our CPF funds or our Supplementary Retirement Savings (SRS) account. We can also search for funds to invest in if we know the fund name, or if we want to invest with a certain fund house or on an investment theme.

Read Also: Active Investing VS Passive Investing, Lump Sum VS Dollar Cost Averaging: Which Investment Strategy Suits You Best?

# 9 Phillip Unit Trust Regular Savings Plan

Apart from its Share Builders Plan, Phillip also offers a Unit Trust Savings Plan. Investors can choose to invest in up to 400 funds from as little as $100 a month. They can also make use of their CPF or SRS funds to make these investments.

# 10 FSM MAPS

On FSM Maps, we can also start investing via a regular savings plan from as little as $500 a month. Investors can choose from five different risk level, ranging from conservative to aggressive, as well as whether they prefer a growth or income portfolio, based on their investment objectives and risk tolerance.

Read Also: Why Asset Allocation Is The No.1 Thing Investors Don’t Think About…But Should

FSM MAPS is able to give investors an exposure to a diverse range of unit trusts and ETFs globally.

# 11 dollarDEX

DollarDEX offers two types of monthly investments – a regular savings plan and a value averaging plan. DollarDEX allows investors to invest on their own or via five recommended portfolios, again ranging from conservative to aggressive.

On its regular savings plan, investors can invest similar to the other types of investments by contributing a regular investment of at least $100 each month. On its value averaging plan, the amount invested is not fixed. Rather, it is tied to a target growth rate and fluctuates based on how well or poorly the fund performed in the previous month. This way, investors will hit their portfolio size at the end of their target investment period.

# 12 Endowus

Endowus is an independent fee-only platform that aims to help Singaporeans grow wealth by investing systematically, in share classes that were only previously available to institutional investors, managed by top global investment firms such as Dimensional and PIMCO.

They create customised portfolios for investors by making the asset allocation and portfolio construction decisions using data-drive and institutional asset allocation framework. They apply quantitative and qualitative screening to find funds that have outperformed over the long-term.

Read Also: Understanding endowus: How This FinTech Investment Advisor Will Help S’pore Investors Access Superior Global Portfolios At Low Cost

# 13 MoneyOwl

MoneyOwl, a social enterprise between NTUC Enterprise and Providend, dubs itself as Singapore’s first bionic financial adviser.

MoneyOwl offers five model portfolios – Equity, Growth, Balanced, Moderate, and Conservative – made up of funds managed by Dimensional Fund Advisors. These five portfolios are based on your risk appetite and are made up of differing weightage in three Dimensional equity and bond funds.

Honourable Mention

# 14 Financial Advisers

Aside from the above platforms, you can also invest a fixed monthly sum through products offered by your financial adviser(s). Also known as investment-linked policies (ILPs), your money can get invested with a range of funds offered by the insurer. You’ll need to take time to understand how the ILP you’re considering works, especially the loss you would make if you surrender your policy early.

Read Also: 5 Reasons Why Singaporeans Still Continue Buying ILPs Today

FSM INVEST Expo 2020

FSMOne.com believes in INVESTING, Fundamentally – investors should first understand the basics of investing before they get started, and it is also important for them to focus on fundamentals in the research perspective of investing.

Join FSMOne.com at FSM INVEST Expo 2020 on 18 January 2020 (Saturday) from 10am to 6pm at Suntec Convention Centre (Hall 403)!