I’ve heard of this term called passive investing and think that it is suitable for those who are starting out in investing or those with little knowledge on investment. In essence, this method works by you putting a fixed amount into an index fund and let the fund grow over time.

A recommended fund if you’re investing in Singapore is the STI ETF. You can buy this ETF from SGX (Singapore Exchange) directly. However, currently the minimum investment for this ETF is $3,000+. Most young investors who just started working will find it hard to invest $3,000+ at a time. They will not have enough money to see the effects of dollar cost averaging, which is investing on a regular basis.

The solution is to start a share builders plan from Phillip securities. I’ve attended talks on this share builders plan and have also talked to a licensed broker from ...