I stopped the regular savings plan with POSB because I realised the expense fees are really high as compared to if I bought at a lump sum. I found FSMOne that has lower investing fees. I also realised I have been making losses with this investment. At first I thought index funds would not lose money because of automatic rebalancing etc. But when the market is not doing well as a whole, index funds lose money.
I also learnt that in Singapore it makes more sense to create my own stock portfolio because with STI ETF I am paying for the top 30 companies. But if I create my own stock portfolio I can focus my investments in a few companies.
Does this mean I will stop investing in STI ETF? No. It just means I will time the market. Yes, timing the market is not a good idea. However I think it makes sense to wait for the prices to dip below average and buying more during a dip, then to blindly buy into the index when it is overpriced. Because the STI ETF does not increase in price over time.
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