Thursday, June 05, 2014

Why consumers should invest in the STI ETF

The best investment plan for long term savings is the Straits Times Index ETF. The reasons are:

a) It is well diversified, reducing risk
b) It earned an average yield of more than 9% over the past 20 years, after deducting expenses.
c) The expenses is only 0.3% per annum.
d) When investing for the long term, you can ignore the dialy market fluctuation.

If you are investing for 30 years, the difference between an investment linked policy that pays a net yield of 3% and the STI ETF (assuming only 6%,) is quite large. The STI ETF can pay 50% more. If you get $200,000 from the policy, you get $300,000 from the STi ETF.

You can take a monthly sum of $100 or more in the STI ETF using the regular investment plan offered by POSB or OCBC. See

To understand more about this investment, attend this talk. Spend $30 and 3 hours. and get a lot more for your retirement!
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1 comment:

yujuan said...

Many people, including this commentator, prefer to invest ourselves.
A tip given by an executive at NTUC Income, who said never trust any Fund manager to invest your money.
For an instrument like STI ETF, invest yourself at time when market corrects, if caught, use the averaging rule to even out the risk.
No need to rely on DBS or POSB.
But then the ordinary Joe is not eligible to invest in this ETF, so no other choices, except the DBS Nikko STI. I rather pick the latter.

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