Skip to main content

POSB Invest-Saver RSP Update


It was about 3 months ago that I subscribed to POSB Invest-Saver Regular Savings Plan (RSP) amid all the global turmoil. This RSP buys the Nikko AM STI ETF(Ticker: G3B.SI) every month with the amount you set(eg. $100). There is another STI ETF(Ticker: ES3.SI) but you can't buy it with this plan. This 2 ETFs simply tracks the performance and try to replicate its returns of the Straits Times Index(STI).

From an NSF

This is also the first foray into stocks for me, putting $100 from my NS allowance into this. Now how did it go?


Dollar-Cost Averaging

Buying less at high prices and buying more at low prices has allowed me to average down the Average Unit Price and Average Unit Cost though it is quite insignificant given the short period of buying.






Currently, with the $1 commission, the Total Investment Cost is $293.49. The Cumulative Portfolio Value is $290.49. 



Given the negative news surrounding the world financial markets, it's a -$29.49 portfolio loss with the current portfolio at $261. How do I feel about it? Well I can sleep tight at night, but bear in mind that I am starting with very little. Those who have significant cash invested into this STI might be reacting differently. As the invested sum grows, I could lose a little sleep also.

Dividends

 

January paid out dividends of $2.93 and I consider $0.93 as the interest(dividends- 2 months of commission) for $293.49 invested.

Not bad considering the bank's interest rates in a savings account. 1% commission is a little steep to me honestly, but I'm using interest from CIMB FastSaver which is my investment warchest to pay for it.

More $ into this RSP given that STI is at 2539.95 right now? 

Maybe. It can go even lower, nobody knows. If you're serving NS right now and would like to start a RSP, note that you need to know what you're getting into and this cash is not guaranteed.

For now, I love it because:

1. I don't try to time the market.
2. I need instant diversification and buying into the ETF that tracks 30 stocks of the STI allows me to have it.
3. I can afford to stomach this for who knows how long this bear market will last.
4. I'm still reading up on stocks but I get the exposure to it in the meantime.

I'm still adding to my emergency funds(note I don't call it just savings) to have a good cash buffer, and saving for an ORD trip.

Till next time,
Mr K.

Comments

  1. well done Mr K - you guys are lucky to have all these cost-effective options at your fingertips. I saved $10k during my NSF days (almost 20 years ago) and could only plonk it into unit trusts which charged 5% upfront fees! and then the market totally tanked! It took my almost 10 years to get back a decent return (and then I ditched it for ETFs!) Good luck and stay safe

    ReplyDelete
  2. Hi there Serendib!

    Wow, quite a lot of effort to save up that much! Can tell you were very disciplined! Were you an officer? Haha.

    It must have hurt as well. I think I'm quite negative on unit trusts because most don't beat the market. Well, that was after I read books and I never checked out unit trusts. Thank you for sharing your experience!

    Today, we have forums and then financial blogs that suggests alternatives! So I must say we are pretty lucky today. It is out there and people just need to spend a bit of time googling it.

    Wishing you the best also!

    ReplyDelete
  3. I wish I had started as early as you, but potentially there wasnt this product then.

    Anyway, if you have not joined us yet, here's a link: https://www.facebook.com/groups/indexinvestingsingapore/

    ReplyDelete
  4. This comment has been removed by the author.

    ReplyDelete
  5. This comment has been removed by the author.

    ReplyDelete
  6. Replies
    1. Hi,

      I used the formula from http://www.investopedia.com/terms/c/cagr.asp

      In the formula, it's Ending Value / Beginning Value.
      My Total Investment Cost was the Beginning Value and my Ending Value was the Current Portfolio Value(market price)

      Delete

Post a Comment

Popular posts from this blog

Value-for-money: Kinokuniya or Booksdepository

Meet Kinokuniya and Books Depository.  The former has physical brick-and-mortar and online stores while the latter is solely an online retailer.  For all the book lovers out there, I am sure these are some of the places we go in order to satisfy our book cravings. Kinokuniya was where I picked up my first book on investing. I summarised some of my thoughts on that book here . Since then, I have bought at least 6 other books on investment and other genres that cost at least $200 in total from Kinokuniya.  Book lovers should also know that Kinokuniya is not the cheapest for pricing. I came to know Books Depository  recently, and boy is there a huge difference in price.  Let's compare an investment book, say  Common Stocks and Uncommon Profits and Other Writings.  On Books Depository : $18.56, original price: $30.03  On Kinokuniya : $37.40, member's price: $33.66    If we are to compare prices only, then we have a clear winner here. Kinokuniya is st

Transitioning into an 'investor'

Nobody said it was going to be easy. I admit that I feel like giving up sometimes. Well, it's only human to choose the easiest path out. For the second half of 2015, I have been actively seeking higher returns on my savings in bank accounts, been busy reading about the current economy, markets and checking the Straits Times Index (STI). After these few months, I'd would to think that I have improved slightly in developing the mindset, slowly but surely transitioning into becoming an 'investor'.  Hunting for free money  In the later half of 2015, I have opened up an additional bank account: CIMB FastSaver which offers 1% p.a with no strings attached. I have not started work and I have not paid for my own bills to earn higher interest in local banks(e.g the OCBC 360 account)  When I shared with my parents and friends, they were skeptical. A Malaysian bank? Perhaps it doesn't inspire much confidence when they see

My Insurance Policies

Too expensive. A waste of money. I don't need insurance. I don't know how much I'm covered. My parents bought insurance for me and handles it.  These are just some of what people say. I've had some friends who said that when the topic is broached.  Insurance isn't easy to understand at all!  So many policies, so many insurers.   To be honest, I'll still choose to let my parents handle it all. But I'm no longer a little boy. I took it upon myself to understand all my policies that my parents bought and which are the policies that I bought on my own. As to how it really started, other than me turning 21, it was also partly due to me wanting to know what I am actually buying.  So it is time to look into the policies I have. Readers who know more about insurance, feel free to correct me on any point. Gladly appreciate it!  Life Insurance CPF Dependents Protection Scheme Covers every CPF member from 21 years old and insures $46,000 in even