Top 5 Regular Savings Plans In Singapore 2022: How To Invest With $100 (2023)

Investing is like exercising every day, improving your cooking skills, or going to bed earlier; we all know we should, but due to lack of time, discipline, or knowledge, sometimes it falls by the wayside.

Not knowing where to start is one of the main reasons why Singaporeans put off investing. You promise yourself that one day you'll be googlingInvesting for Dummies. But there are more pressing things to do right now.

solution? Regular savings plans provide an easy and easy way to grow money within a limited budget, even if you know nothing about investing. With one of these plans, you can start investing from the age of 18.

That way, when you start searching the World Wide Web for knowledge, you already have a little savings.

content:

1. 1. What is a Regular Savings Plan?
   2. At a Glance: 5 Best Regular Savings Plans in Singapore
   3. DBS Regular Savings Plan
   4. OCBC Regular Savings Plan
   5. POEMS Regular Savings Scheme
   6. FSMOne Regular Savings Plan
   7. Saxo Regular Savings Plan
   8. So which RSP should you use?
   9. Case Study: Investing $500 a Month in a Regular Savings Plan
   10. What about other banks' RSPs?

What is a Regular Savings Plan?

A regular savings plan requires you to make regular (usually monthly) payments of a fixed amount. The scheme will invest cash in blue-chip stocksstock,real estate investment trustIETF.

These programs use a method calleddollar cost averagingTo protect investors from most stock volatility. This method involves investing the same amount of money on a fixed, regular schedule regardless of market performance.

Because you are constantly exposed to the market, you can ride out the ups and downs over the long term and benefit from the market's overall upward trajectory.

A RSP can be a good option for novice investors or those who don't have the time or patience to monitor the stock market and react to fluctuations accordingly. It's designed for medium to long-term investing, so don't expect to make quick bucks.

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Top 5 Regular Savings Plans in Singapore

We will compare the top 5 options in Singapore:DBS Investment Savings,FSMOne Regular Savings Plan,OCBC Blue Chip Investment Plan,POEMS Share Builders Plan y Saxo Regular Savings Plan.

Remember, there are many more RSPs on the market, but we focus on those withETFs or funds quoted on a stock exchangesolo.

Let's take a closer look at each RSP.

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1. DBS Regular Savings Plan

heProgram DBS Invest-SaverAllows you to invest in ETFs and mutual funds for$100 monthly minimum.This is convenient as all your dividends can be deposited directly into your existing DBS/POSB account, so there is no need to open a new account. You can register with DBS Invest-Saver after you turn 18.

The program offers four ETFs:

• JAL AM SingaporeStraits Times Index ETF(tracking Singapore stocks)
• ABF Singapore Bond Index Fund (viaBonos Singapore Dollar)
• Nikko AM SGD Investment Grade Corporate Bond ETF (monitors SGD corporate bonds)
• Nikko AM-StraitsTrading Asia ex Japan REIT ETF (Asia Trackingreal estate investment trust)

An important factor to compare when choosing this type of plan is the transaction fee or monthly selling fee, which can affect your income. DBS Invest-Saver feesBond ETFs 0.50% per tradeyesEquity ETFs and REITs 0.82% per trade.If you invest $100 per month, this means you will pay a whopping $0.82 per month or $9.84 per year in transaction fees.

Sound good? DBS has a limited time promotion you can take advantage of. Between now and 30 June 2023, set up your DBS Invest-Saver plan to gainFull refund up to $125on your sales charges.

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2. OCBC Regular Savings Plan

If you prefer to stay within the bank's ecosystem, another convenient option isOCBC Blue Chip Investment Plan.You can open an account after you turn 18, or if you are under 18, you can open a joint account with your parent or guardian.

This regular savings plan lets you set asideOnly $100 per monthAnd piece together a portfolio of up to 30 stocks/ETFs. You can then sit back and deposit dividends (if any) directly into your OCBC account.

The OCBC Blue Chip Investment Program allows you to invest in Straits Times Index (STI) companies such as DBS, OCBC, Singtel and StarHub, as well as the following ETFs:

• Lion-OCBC Securities Hang Seng Technology ETF
• Lion-OCBC Securities Singapore Low Carbon ETF
• Lion-OCBC Securities China's Leading ETF
• Lion-Phillip S-REIT ETF
• Nikko AM SGD Investment Grade Corporate Bond ETF
• Nikko AM Singapore STI ETF

If you have recently learnedSingapore Green Plan 2030, you'll know that sustainability is high on the government's agenda. With this in mind, investing in the Lion-OCBC Securities Singapore Low Carbon ETF could be a smart investment move.

Customers under the age of 30 who invest up to $500 can enjoy preferential interest rates from0.88% per transactionFor those investing $100 per month. That's $0.88 per $100 installment, or $10.56 per year.

Otherwise, you will pay the following fees0.3% or $5 per counter, whichever is greater.Because the fees are minimal, if you're over 30, it's worth investing a higher amount each month.

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3. POEMS Regular Savings Scheme

POEMS has a few savings plans available, but here we will focus onShared Builders Program, which allows you to invest inAs low as $100 per month, automatic payment via GIRO. It is open to anyone over the age of 18 and also allows joint accounts.

The POEMS Share Builders program allows you to invest inMore than 50 ETFs and stocks.Selected stocks include DBS Bank, OCBC Bank, Genting Singapore, Keppel Corporation and Sembcorp Industries.

The range of ETFs is also wider than DBS and OCBC, including SPDR Straits Times Index ETF, ABF Singapore Bond Index and Lion-OCBC Securities Hang Seng Technology ETF. If you want to invest in real estate, you can choose REITs such as Frasers Centrepoint Trust and MapleTree Pan Asia Commercial Trust.

Unlike savings plans offered by DBS and OCBC, which allow you to deposit your income into your regular bank account, you need to open a separate Philip investment account.

A nifty feature is that the plan gives you the option to reinvest dividends, which is great for younger investors who don't need income.

In terms of handling fees, POEMS Share Builders Plan will charge you0.3% p.a. Total Portfolio Value (TPV).The minimum monthly fee is$ 1, and the maximum value is$8.88/mIf your POS is less than S$40,000, and$5.88/mIf your POS amount is S$40,000 or above.

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4. FSMOne Regular Savings Plan

fondosupermercado oFSMOne offers Regular Savings PlanOwns 125 ETFs on SGX, HKEX and US markets, making it aThe world's widest selection of ETFsProvided by the plans in this list.

These include more niche ETFs such as the Premia Dow Jones Em ASEAN Titans 100 ETF (which tracks emerging markets in Southeast Asia) andArk Next Generation Internet ETF(tracking digital and tech companies). But the options can be overwhelming for beginners.

If you are investing savvy but on a tight budget, FSMOne ETF Regular Savings Plan is the best choice for youMinimum monthly investment as low as $50.

Your purchase cost is0.08%, with a minimum order of S$1, HK$5 or US$1,Whichever is higher. Since order fees are the lowest, it's best to spend at least a few hundred dollars each time.

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5. Saxo Regular Savings Plan

This isSaxo Markets Regular Savings PlanAllows you to choose from one of 4 professionally managed ETF portfolios from BlackRock and Lion Global.

• Defensive— A low-risk portfolio focused primarily on bonds, managed by BlackRock.
• ease— Medium risk, balancing growth potential with no losses. Also managed by BlackRock.
• Provocation— High risk, with a focus on equities. Managed by BlackRock.
• Dynamic Growth: An Asian Perspective—High risk, focused on Asia and emerging markets. Managed by Lion Global.

similar to manycar consultant, Saxo RSP allows you to invest in a prepared portfolio rather than forcing you to decide which ETFs and stocks to choose.

You need to deposit at least$2,000 to start investing.Thereafter, regularly contribute to your investment on a weekly or monthly basis, each$100 minimum donation.

they charge0.25% to 0.75% service charge, $0.25 to $0.75 per month if you invest $100 per month, or $3 to $9 per year.

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So which RSP should you use?

If you are looking for comfort,DBS Investment SavingsyesOCBC Blue Chip Investment PlanThey are the most convenient because you don't need to set up a separate account to receive your dividends.

DBS is more profitable if you're under 30, but they're also more limited in stock/ETF selection.

FSMOne's RSP offers the best range of global indices, so if choosing a good ETF is your priority, go for this one.

The Saxo Markets Program is unique in that it offers professionally managed portfolios rather than individual stocks, ETFs etc. If this appeals to you, you might want to combine it withcar consultantin Singapore.

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Case Study: Investing $500 a Month in a Regular Savings Plan

Let's look at a case study of an average guy named Bob, who is 30 years old and ready to start investing. He earns $3,000 a month and can set aside $500 to invest. Here's what you pay to use a regular savings plan:

Bob's cheapest option isFSMOne Regular Savings Plan, billing only$1.35 per month.But with 125 ETFs worldwide to choose from, it can be a little overwhelming for a virgin investor like him.

Another cheap option isDBS Investment Savings, you'll pay a modest fee for$2.50 to $4.10 per month.It limits you to 4 local ETFs, which is fine for now, but may feel limiting in the future as your investing knowledge grows.

If Bob decides that he would prefer to invest in a global ETF portfolio rather than restricting his investments to the Singapore market, he can chooseSaxo Regular Savings Plan, the price is reasonable$1.25 to $3.75 per month.

Since OCBC and POEMS offer more expensive prices, Bob will only consider them later when he makes more money and can save more to invest.

What about other banks' RSPs?

Citibank, Standard Chartered and UOB also have RSPs, but their offers only allow you to invest in mutual funds.

investment fund, also known as mutual funds, are somewhat similar to ETFs. Both consist of a collection of investment assets that allow you to invest in a diversified basket of assets without breaking the bank.

The difference is that a mutual fund is basically a portfolioactive managementBy professional fund managers who must constantly make decisions about capital allocation. Some of your money will be used to pay the fund manager's hefty fees.

At the same time, ETFspassive managementasset basket. Asset allocation is automatic and based on the composition rules of the ETF. They also have fund manager fees, but they are much lower.

ETFs are often cheaper for beginners who can hold investments for the long term. However, some people may prefer mutual funds because fund managers can strategically manage their portfolios to generate profits during tough economic times.

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