You can call it index investing or passive or outsourcing. When you outsource the task; you don't feel the heat, dirt or the heavy lifting; but you got to pay some fee. Worth paying this fee to managers or pay ourselves when we get our own hand dirty in the market? Can we DIY mini subset of STI ETF as blue chips uncles or aunties?
Updated in response to Singapore Man of Leisure17 February 2018 at 13:45:00 GMT+8 CW, You sneaky, sneaky ;) Your example is a good test on whether one can read "numbers"; especially if readers call themselves "fundamental investors". 1) Right off the bat, someone who invested in unit trusts or ETFs (and know what they are buying into) would know your percentages were off. Where got management fees 8.9% one!!!??? Management fees are usually charged as a % of AUM (asset under management) - usually in the 1-2% range ;) Most people who "invest" in unit trusts and ETFs are in it for the capital gains. 2) On the other hand, your example is great for those who "invests" in unit trusts and ETFs for income. Yup, its like buying a rental property but you too lazy to deal with the tenants. So you hired a property firm to handle the tenants for you - no free lunch - at 8.9% commission of your rentals ;) Ar ber then? Passive what? LOL! From the number below; how many retail investors are trading their STI ETF shares for capital gains?
I am 61 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and retired @ 60 from full-time job as employee.
Single household income since 1995 with three children. Eldest son and daughter are now working and youngest son still in his 2nd year uni in SUTD.
I have been doing long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that Panda or Koala in the investment world; but I am still surviving well in the wild.
I am now executing my Three Taps solution model to maintain sustainable retirement income for life till 2038.
Last updated: 3 Sep 2017
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