Here’s How Singapore Investors Can Buy BlackRock Funds Via A Newly-Launched Regular Savings Plans By Saxo Markets

Saxo Markets recently joined hands with global investment manager BlackRock in launching their own Regular Savings Plan (RSP). Singapore is the first international country to roll out the product.

As a start, Saxo’s RSP provides investors simple and smart approach in monitoring their investments through the Saxo Investment Portal, which is fitting for a fast-paced world. In addition, portfolio managers from BlackRock will manage the portfolios using the latest investment data and insights. These benefits come at a lower cost, with no exit fees charged.

Here are some details about the new RSP product, and how Singapore investors can buy BlackRock funds using this new plan.

Read Also: What Are The Pros And Cons Of Investing Using A Regular Savings Plan (RSP)?

What Is A Regular Savings Plan (RSP)?

For the uninitiated, an RSP is a type of investment that allows investors to set aside a fixed amount of funds every month into buying blue chip stocks, exchange-traded funds (ETFs) or real estate investment funds (REITs). The monthly investment amount starts as low $100 a month, and is designed for investment in the medium- to long-term.

Using dollar-cost averaging, (the concept of using the same amount of funds to buy more when prices are low, and to buy less when prices are high) RSP helps to spread out the risks arising from the volatility of stocks.

This makes it a suitable option for new investors who are risk-averse, and those who may not have the time to monitor the market and react accordingly to fluctuations, especially in an increasingly fast-paced market with emerging trends.

Read Also: Regular Savings Plan Or Value Averaging Plan: Which Monthly Investment Strategy Should You Choose

About the Saxo Regular Savings Plan

Unlike the other RSPs available in the market where funds are invested into ETFs and REITs, Saxo’s RSP allows investors to invest directly into three different managed portfolios. The portfolios are managed by BlackRock, allowing RSP investors to tap onto their expertise.

There are three managed portfolios available catering to different risk appetite:

Defensive: Suitable for cautious investors who prefer to see positive long-term returns. The portfolio focuses on lower-risk investments such as bonds, with some exposure to stocks and other alternatives. The low-risk defensive profile boasts a 6.97% return since 2017; it also loses 5-10% of value during high volatility periods.

Moderate: Suitable for investors who can take moderate level of risk. The portfolio consists of a balanced mix of high and low-risk investments, and comprises of stocks, bonds and other alternatives. The medium-risk moderate profile has a more modest 1.91% return since 2017. This profile sees a 10-15% loss from volatility;

Aggressive: For those who can take on a higher level of risk in their investment for positive long-term returns. The portfolio focuses on stocks, with some exposure to bonds and alternatives. The high risk aggressive profile claims a 4.44% return since 2017. It could also see a 20% loss during volatility.

Investors can choose to invest in more than one portfolio. There is also a flexibility for investors to take “payment holidays” by pausing and restart the regular contribution, or to change their regular contribution amount as they see fit.

Read Also: Retirement Planning Made Easy: 3 Things To Do Today To Prepare For Your Future Retirement

How To Start An RSP With Saxo

Designed to be mobile-friendly, investors who are keen to start their investment can take the following steps to open an account within minutes:

Step 1: Open a new Saxo account via this link using either SingPass or filling up personal details manually;

Step 2: Choose your preferred portfolio that is suited to your investment goals and risk profile, and then to complete a short questionnaire

Step 3: Confirm the managed portfolio and start investing.

Read Also: Step-By-Step Guide To Investing Using Regular Shares Savings (RSS) Plan In 2020

Costs Of Investing In Saxo’s Regular Savings Plan

Saxo’s RSP is designed to be low in fees, and is not tied to a fixed period. This allows investors the freedom to choose when and what to sell at no cost.

The starting capital for investment is a minimum upfront sum of $2,000, with a subsequent monthly investment of as low as $100. Recurring investments can be deposited via a variety of options, including telegraphic transfer, FAST, MEPS or GIRO.

A 0.75% service fee on the investment amount is charged annually. There will be no transaction costs involved, although a built-in 0.23% ETF cost should be expected.

Currently, only investment via cash is accepted. The RSP does not accept CPF or SRS funds.

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