Wednesday, May 23, 2007

Indexed funds for small investors

A few people have asked me to get Vanguard to set up their indexed funds in Singapore. They like to have access to low cost funds.

There is already a way for investors to access an indexed fund. It is called the STI ETF.

However, some small investors may find it difficult to open a account with a stockbroker or with the Central Depository.

I will study a way to set up a mutual fund that allows small investors to invest in:

* indexed fund, eg STI ETF
* government bonds

This service can be handled through the internet or contact center, and can be at a very low cost (say 0.1% per annum).


Anonymous said...

You might find this useful. You can make use of the "share builder plan" by Phillips Security to buy the STI ETF on a monthly basis - doing a dollar cost averaging. Go to for more details. This also allows purchase of certain Singapore blue chips shares at a fixed amount monthly.

Anonymous said...

Yes, the share builder plan could be useful. However, depending on the price of a lot, you might just want to accumulate your monthly budget (say in a money market fund) and invest every few months instead.

-anonymous coward

Alvin said...

Lion Capital has 3 funds (Infinity series) which are feeder funds to Vanguard. Can use CPF OA to invest in them too. But of cos having Vanguard to do direct selling in Singapore should lower the fees.

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