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?
Last updated : 14 Sep 2019
I am 63 yrs old uncle living in HDB heartland who has achieved financial independence @ 56 and finally retired @ 60 from full-time job as employee on 1 Oct 2016.
Single household income since 1995 with three children.
Currently, two sons and one daughter are working.
I have been doing 20 years of long-term investing and short-term trading in Singapore stock market only since Jan 2000 so I am that so-called Panda or Koala in the investment world.
I am currently executing my Three Taps solution model to maintain sustainable retirement income for life till 2041 @ 85 yrs old.
Disclaimer: Stock trading involves significant risks. Create Wealth trader is not a licensed Investment Adviser and will not be responsible for any losses which you incurred. You are advised to always do your own homework before making any trading decision.