When I first heard about the OCBC Blue Chip Investment Plan, the first thing I did was to scroll down to the Fees & Charges section! Before you go down the same path as me, first you can check out what it is. It has a decent webpage and plenty of information.
Now, for the important part of OCBC Blue Chip Investment Plan :
Buying/Selling of shares – 0.30% or S$5 per counter, whichever is higher.
Touted as an “affordable and hassle-free way to invest in blue chip shares”, I guessed they forgot to tell you the humongous percentage of your hard earned money that would go towards paying of fees.
If you are going to invest only $100 monthly, your fees would be 5.0%.
If you are going to invest only $200 monthly, your fees would be 2.5%.
Even if you invest $500 monthly, your fees would still be pretty hard to swallow at 1.0%.
To be fair, they have stated that the launch promotion that is luring you in is only temporary.
For a limited time only, you only have to pay a fee of 0.30% when you buy or sell through BCIP.
Assume that the limited time promotion is over, and the Nikko AM STI ETF is priced at $3 now. You invest $100 monthly through BCIP. In 3 months, you spend $300, and pay $15 in fees. ($5 monthly)
Now, assume that someone buys Nikko AM STI ETF differently through Standard Chartered. Save up $100 monthly for 3 months, and buy 1 lot of 100 units for $300. Fees? 60 cents at 0.2%. (of course, you’ll still need to pay the SG Clearing Fee)
I guess I’ll be sticking to Standard Chartered Bank for now. Let’s just pray that the 0.2% fee remains unchanged, shall we?
Useful Tidbit for Today :
A lot of people have asked whether STI ETF pays dividend, and the answer is YES
More Than Index Investing
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