Tan Kin Lian's Blog: Invest in STI ETF

Sunday, July 04, 2010

Invest in STI ETF

Dear Mr Tan,
I have read through some of the articles on your blog and am very impressed by your investment knowledge. I heard from my Income agent that you are very experienced with investment and gives excellent advice.

I have a savings account with Standard Chartered and would like to start investing in unit trust. From your experience, what is the difference between investing through the bank or through those brokerage firm like Phillips Securities?

Many people told me to invest in STI ETF, is it unit trust and is it a good time to invest now? How about REITS? Are these unit trusts?

Josephine

REPLY
STI ETF is for long term investment. If you invest your monthly savings, anytime is a good time. Do not try to time the market. If it better to buy through a stockbroker, rather than a bank. Philips Securities is okay. It is also all right to invest in unit trust, provided that the expense ratio is less than 1%.

Do not invest in an insurance policy as the "effect of deduction" is too high, giving you a poor return. Read my book, Practical Guide on Financial Plannng, available at www.easysearch.sg/ishop.

7 comments:

Createwealth8888 said...: STI ETF is suitable for long term investment for those who doesn't wish to monitor the stock market themselves and in the future years for a slow and regular draw-down by selling small amount each time.

If you ever need to withdraw large amount of money from your STI ETF during very bad market condition, you may lose money.

STI ETF by nature is traded like a a basket of stocks and still subjected to the laws of the stock market jungle - preys and predators. No difference.; July 04, 2010 11:38 AM
Anonymous said...: eh, maybe STI ETF is paying you commission to promote them issit??? Everytime invest in STI ETF....; July 04, 2010 11:58 AM
Anonymous said...: Anonymous said...

eh, maybe STI ETF is paying you commission to promote them issit??? Everytime invest in STI ETF....
July 04, 2010 11:58 AM

If not ETF then ntuc revosave? reach?
growth? these rotten products.
ETF is the bestest . Mr Tan is objective, unbiased and motivated by commission like product peddling insurance agents like you, who misrepresent or cheat the public by your title which you are not fit to use.; July 04, 2010 12:48 PM
Anonymous said...: Blessed is he who shares his wealth & wisdom.

Thank you Mr Tan, you will always be remembered as a selfless person who shared his beliefs and wisdom.

Though you may not have shared any money ( which is not required ) your knowledge in financial products and investments is truthful and without personal gain. This is far more valuable than actual cash.

I support you and I wish you well in all you do.; July 04, 2010 1:33 PM
Anonymous said...: all investments is subject to market conditions. Mr Tan recommended ETF coz it is a better investment vs unit trust(higher cost/risk (for certain UT)), stock (higher risk), insurance/bond (low return) etc. if you prefer a safe money, just park at fixed deposit.; July 04, 2010 1:48 PM
Anonymous said...: Phillip Securities is a good broker to purchase the STI ETF. They have this program called the "share builder plan", whereby it allows you to set up a giro to allow the broker to deduct a fixed sum of money from your bank account to purchase the STI etf every month.

This way, it is as good as dollar cost averaging and you do not need to time the market or worry about forgetting to invest monthly as the deduction is automatic until you wish to stop it.

I am currently on this program, and the monthly fee charged in commissions is only $6, as opposed to the standard commission of $25 if you purchased it yourself online.

I think this is suitable for anyone looking to invest a small sum of their monthly income in a long term investment. Like what Mr Tan says, find a fund with low cost to invest in, the STI ETF is a good option.

Hope this helps.; July 04, 2010 1:55 PM
hosingping said...: Hi Mr Tan,

I went to philips capital and notice there is a non STI shares. is it consider a STI ETF?; July 06, 2010 8:24 AM