Other Sell transactions for Mar 2017

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Another sale event following up from the big one last week. The proceeds are not as high but what is significant about this one is that we are selling some of our ETFs. I have mentioned before that our portfolios structures are messy and uncoordinated because of inexperience and lack of clarity in our strategy. Our investment approach developed over time and although our buy transactions are more … [Read more...]

Buy transactions for Mar 2017

Let’s get the part about our Buy transactions for Mar 2017 out of the way first. Automated Investing Maybank Kim Eng Monthly Investment Plan Buy 30 units of SPDR STI ETF (ES3 on SGX) at S$3.15 per unit on 8 Mar 2017 Transaction cost of S$1 POSB Invest-Saver Buy 30 units of Nikko AM STI ETF (G3B on SGX) at S$3.22 per unit on 14 Mar 2017 Transaction cost of S$1 OCBC Blue Chip … [Read more...]

NikkoAM-StraitsTrading ex-Japan REIT ETF or "AK REIT ETF"?

I am feeling lazy, as always, and didn't want to write about the new REIT ETF but I received so many messages that I decided, maybe, I should say something. I didn't want to blog about the ETF because it is easy enough to understand. It will hold a basket of REITs, 23 to be exact, from countries such as Singapore, Hong Kong and Malaysia. It will distribute income quarterly and the distribution … [Read more...]

NikkoAM-Straits Trading ex-Japan REIT ETF : Should You Invest?

NikkoAM will be launching a new REIT ETF on SGX. The new REIT ETF named NikkoAM-Straits Trading ex-Japan REIT ETF is set to list on 29th March 2017. If you’d like to invest in REITs but are too busy to analyse individual REITs, this could suit you. But before you jump into it, let’s take a look at its features: Key features of the NikkoAM-Straits Trading ex-Japan REIT ETF Investment … [Read more...]

Investment transactions for Feb 2017

I’m going to first address the updates to the OCBC 360 bank account from 1 Apr 2017. As bank profits fall, one of the ways they can reduce expenses is by lowering the interest payments on the high interest bank accounts. This can be done easily by adjusting the interest rate tiers downwards that are earned on the various requirements to be met with one month’s notice and especially after they have … [Read more...]

Simple investment wisdom keeps us afloat.

What AK thinks of the LRIS: "Since I treat my CPF savings as a risk free and volatility free component (i.e. AAA rated sovereign bond) of my investment portfolio, I am unlikely to take part in the proposed Lifetime Retirement Investment Scheme (LRIS). Of course, money in the CPF-OA doubles up as a war chest which could be deployed in the event of a stock market crash for possibly better returns … [Read more...]

Have you decided yet?

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This post is for you.  Yes, you, who sent me that e-mail yesterday asking me whether it would be a good timing to start investing in the stock market right now. I understood from your mail that you have not started to invest anything in the stock market.  All savings are in FD and you are – figuratively spoken – sitting on the fence waiting to deploy your savings into the “risky stock market” … [Read more...]

Familiarity Bias vs. Ambiguity Effect

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Or otherwise known as reliance on old-fashioned financial institutions and outdated economic structures.  Partly, it is due to habit; partly, because of our concerns about liquidity; and partly, because we think that it is always risky to experiment with new things where we might lack information (“ambiguity”). We seem to want to persist in using the tried financial technology that was used by … [Read more...]

1% commission charges and updates

Biggest news of this week is that Trump will be the next president of US. I didn't take any positions before or after the polling day. The markets are especially volatile and my portfolio & investing strategy are designed to try and navigate times like these more calmly. Sometimes by staying out and doing nothing. I have just been fine-tuning the auto-purchases of the ETFs in the Monthly … [Read more...]

Phillip REIT ETF – One Thing People Aren’t Saying

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I’ll keep this post short! A REIT ETF such as Phillip SGX APAC Dividend Leaders REIT ETF is a great tool to have at our disposal and I have been waiting for ages for one. It would fit in nicely if you’re trying to construct a portfolio like Rick Ferri’s Core Four, for example. Portfolio Charts is a website that I really like, by the way. Taxation I’ve been waiting for someone to mention … [Read more...]

Not-Invented-Here-Bias

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Last week I wrote about expensive Mutual Funds / Unit Trusts and their cheaper (and better) alternatives called Exchange Traded Funds (ETFs). You still don’t buy it. Ok, that might be my fault because I am simply not convincing enough that passive, systematic, repeatable investment strategies are the best option for the majority of investors. Or, maybe you could be suffering from the … [Read more...]

Wealth Directions 2016-09-23 01:19:28

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Exchange Traded Fund (ETF) is getting popular among the investors, total global asset value has exceeded US$3 trillion.  ETF has the best DNA of both stocks and investment funds.  ETF is an investment fund which can be traded like stocks, having the stability of investment funds (risk diversification over a large portfolio) and flexibility of stocks (buy / sell in stock market) with minimal fund … [Read more...]

The stuff that could make all the difference in your Mutual Funds

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Fees and Expenses. Investors in mutual funds incur two primary kinds of expenses and fees: Fund expenses and loads.  Whereas fund expenses are paid indirectly from fund assets throughout the year, sales loads are one-time fees that investors pay either at the time of purchase or when units are redeemed. Take a deep breath and let’s go for a deep-dive into those expenses Fund expenses cover … [Read more...]

Normalcy Bias and a bit of Impact Bias

Yaaawwnn.  The stock markets in the last few weeks have been rather boring and uneventful.  The US-market (measured by the S&P 500) has even entered an unusually long period of volatility contraction.  The daily market moves up a bit and then down a bit.  All in minuscule steps.  We recently have gone through the least volatile period in almost 23 years. This market action can lull one to … [Read more...]

Matthew answers questions on STI ETF (Part 2).

Thank You and Matthew Seah for the help! Appreciate it  I still have a few more questions to ask regarding STI ETFs which would require Matthew's or your help. SPDR STI:  1) Matthew mentioned that "It is wrong to say that they paid $12M when they had $5M in cash. What you see as cash is only a snap shot “at 30 June 2015”. What has been paid out is cash they had previously from dividends … [Read more...]

Matthew Seah answers questions on SPDR STI ETF.

Dear AK, I am SH, one of your many blog readers. I am currently 21 years old and i am planning to make my first investment through a STI ETF. (Still deciding between spdr and nikko). However i have quite a number of questions regarding SPDR STI ETF; especially after reading its annual report, which i hope you can help to clarify.These are the questions:Unitholders’ … [Read more...]

Beating the Benchmarks

I especially like to read Sunday Times where there are various Personal Finance articles towards the back of the stack each weekend. In recent months, they have been putting up a series on hypothetical investment portfolios for three people with very distinct profiles. All three portfolios have consistently performed below their equivalent market benchmarks. The common reason stated was … [Read more...]

Stock & ETF Investing Opportunity in BRICS – Emerging Countries

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Due to global economy slowdown in the last few years, stock markets in the emerging countries have suffered significant corrections, resulting in Level-3 (country/region) crisis.  The leaders of emerging countries are BRICS (Brazil, Russia, India, China & South Africa), stock prices are now at very attractive prices.  When the global economy starts to recover and accelerate, these emerging … [Read more...]

Three of the hardest words in the world to say …

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I don’t know. The human refusal to say “I don’t know” has huge consequences, for example, not getting good returns from your investments in the stock market, because there is a strong correlation between knowledge and humility.  As such, the best investors are those who realize how little they know. Don’t be one of those people who spend 10 minutes on Google studying, for example, monetary … [Read more...]

Greed or need?

A few days back I wrote about “Am I saving enough?” Thank you for all your comments.  I am just afraid that those people with their benchmark savings ratios are not really representative of the regular guys. Could it be that those who do save much less right now did not dare to comment at all? And would you consider those with more than 50% savings as “greedy for retirement”? The harsh … [Read more...]