Earlier this week, I wanted to put additional investment in the Combined Fund of NTUC Income. through my Flexi-link policy. I was told that the upfront spread for new investment was 3%.
I decided to look for an alternative investment. I finally made my additional investment in the following:
a) Buy 8 blue chip shares and REIT in the stockmarket (for some diversification)
b) Invest in the STI exchange traded fund
The upfront cost of my investment is only 0.3% (in brokerage fee). This is one-tenth of the cost of investing in the Combined Fund.
A comparison of the annual fees is:
a) Combined Fund - 0.9%
b) STI ETF - 0.3%
c) Blue chip shares - Nil
Lesson: If you have a large amount to invest, you can buy a few shares directly. If you have a smaller sum, you can invest in the STI exchange traded fund (for diversification and low cost).
Mr Tan, can you tell us what is the easiest way to invest in the STI ETF using CPFIS-OA monies? Thank you.
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