Saturday, July 22, 2017

Is this a beter method to buy the STI ETF?

Dear Mr Tan,
I wish to seek your opinion on a concept for buying STI ETF more profitably.

Currently, there are a few Dollar-cost averaging monthly investment plans by different financial institutions. On a fixed day of each month, the financial institution will buy shares/ STI ETF on their customers' behalf. For Poems, it is on the 18th of each month. For OCBC, it is on 22th of each month.

Since they buy the shares in bulk on the 18th and 22th on each month, it is logical that the STI will rise slightly if their buying volume is high enough. This is especially so as most of the shares that they offer for their monthly investment schemes are blue-chips and STI ETF.

If I were an long-term investor who buys STI ETF on a monthly basis (based on Dollar-cost averaging), will i get to buy it at a slightly lower price of say 0.5% a couple of days before the 18th of each month?

Find out the answer here:

No comments:

Blog Archive