Best Regular Savings Plan | Investment Options in Singapore

Investment

Investing is similar to exercising every day, developing your cooking abilities, or sleeping early. We all know we should do it, but it occasionally slips by the wayside due to a lack of time, discipline, or expertise. One of the main reasons Singaporeans put off investing is a lack of knowledge about where to begin. In this blog, we tell you about the best regular savings plan in Singapore. 

What is the Solution? 

Regular savings plans provide an easy, no-brainer way to build your money on a tight budget, even if you have no experience investing. With one of these programs, you can begin investing as soon as you reach the age of 18.

What exactly is a regular savings plan?

Regular savings programs require you to deposit a set amount of money on a regular basis, typically once a month. Your money will be invested in blue-chip stocks, REITs, and/or ETFs under the plan. Such plans employ a strategy known as dollar-cost averaging to shield investors from the majority of stock volatility. This strategy entails investing the same amount of money on a consistent basis, regardless of market results.

The theory is that because you have regular exposure to the market, you will be able to ride out the ups and downs in the long run and benefit from the market’s upward trend. A monthly savings plan can be a useful alternative for first-time investors or those who lack the time or patience to follow the stock market and react to swings. It is intended for medium- to long-term investments, so don’t expect to get rich immediately.

Best Regular Savings Plan in Singapore

DBS Invest-Saver

DBS Invest-Saver allows you to invest in ETFs and unit trusts for as little as $100 per month. It’s handy since all of your profits will be credited immediately to your existing DBS/POSB account. Eliminating the need to open a new account. Once you reach the age of 18, you can sign up for DBS Invest-Saver.

The plan includes four ETFs:

• Nikko AM Singapore STI ETF 
• ABF Singapore Bond Index Fund is a mutual fund that invests in Singapore bonds (tracks SGD bonds)
• ETF Nikko AM SGD Investment Grade Corporate Bond ETF
• Nikko AM-StraitsTrading Asia ex Japan REIT ETF

If you invest $100 each month, you might spend up to $0.82 per month, or $9.84 per year, in transaction costs.

Blue Chip Investment Plan by OCBC

OCBC Blue Chip Investment Plan is another easy choice if you choose to stay within your bank’s ecosystem. You can register an account once you reach the age of 18, or you can open a joint account with your parent or guardian if you are under the age of 18. This monthly savings plan allows you to save as little as $100 per month to build a portfolio of up to 30 stocks/ETFs. Then you can sit back and collect any dividends (if any) immediately into your OCBC account.

OCBC Blue Chip Investment Plan allows you to invest in firms listed on the Straits Times Index (STI), such as DBS, OCBC, Singtel, and Starhub, as well as four exchange-traded funds (ETFs):

• Lion-OCBC Securities (Lion-OCBC Securities)
• Hang Seng Technology ETF
• Nikko AM SGD Investment Grade Corporate Bond ETF
• Nikko AM Singapore STI ETF Lion-Phillip S-REIT ETF

Customers under the age of 30 who invest up to $500 receive favourable fees, which begin at 0.88 percent per transaction for those investing $100 each month. That equates to $0.88 for each $100 installment, or $10.56 per year. Otherwise, you will be charged a cost of 0.3 percent or $5 per counter, whichever is more. Because of the minimum charge, it’s more worthwhile to invest larger sums per month if you’re over 30.

POEMS Share Builders Scheme

POEMS offers several savings plans, but we’ll focus on the Share Builders Plan, which allows you to contribute for as little as $100 per month and make payments automatically through GIRO.

POEMS Share Builders Plan allows you to invest in 49 different ETFs and equities. DBS, OCBC, Genting Singapore, Keppel Corporation, and Sembcorp Industries are among the stocks chosen.

The SPDR Straits Times Index ETF, ABF Singapore Bond Index, and Lion-OCBC Securities Hang Seng Tech ETF are among the ETFs available, which are more diverse than those offered by DBS and OCBC. If you wish to invest in real estate, consider REITs such as Frasers Centrepoint Trust and MapleTree Commercial Trust. One useful aspect is that the plan allows you to reinvest your earnings, which is ideal for younger individuals who don’t require the income.

These were some of the best regular savings plan in Singapore which you can invest in and build your wealth. 

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