Time for a simple comparison between OCBC and Phillip regular fixed-dollar amount investment plan. Been wanting to embark on index investing because it seemed so easy via OCBC or Phillip Capital?
Fee & Charges
What if we’re investing $1000 monthly instead?
Fee & Charges
OCBC BCIP – 0.30% or S$5 per counter, whichever is higher
Phillip SBP – S$6.42 (inclusive of GST at 7%) for Total Investment amount <= $1000
Winner – OCBC (need to pay $5)
Seems like both of them charges a 1% on net dividend.
For Phillip Capital, it is stated on their PDF file they charge 1% on net dividend.
For OCBC, one of my readers brought it to my attention
, although I’m not sure where the source is. that they don’t have dividend charges after he/she spoke to the bank officer.
Penalty Fee for Insufficient Funds
I’ll make it even worst for you, and show you just how bad a deal we’re getting here in Singapore. Take a look a Betterment, a monthly investment plan based in the US.
Monthly Deposit – $100/month minimum
Annual Fee – 0.35%
Looks ordinary. But wait, I have not revealed what the portfolio is.
Is it a single ETF? Nope.
When you deposit money with Betterment, it is seamlessly invested in a blend of two baskets – Treasury Bond Exchange Traded Funds (ETFs) and Stock Market ETFs.
Stock Market Basket
25% VTI: Vanguard Total Stock Market
25% IVE: iShares S&P 500 Value Index
25% VEA: Vanguard Europe Pacific (EAFE)
10% VWO: Vanguard Emerging Markets
8% IWS: iShares Russell Midcap Value Index
7% IWN: iShares Russell 2000 Value Index