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04 July 2011

 

Standard Chartered Bank offering stock brokerage service at lowest commission of 0.18% to 0.20% and without imposing minimum commission

I think SCB scheme is excellent for long term investors using dollar cost averaging method - buy STI ETF 1000 or Nikko AM STI ETF 100 - you can buy as low as 100 units (for Nikko AM STI ETF 100) a time to have a highly accurate averaging with no minimum commission. hope it will not change this scheme in the future.

instead of buying once a month, you can further diversify time of buying by dividing into 4 to 5 times a month, say, buy 100 units of Nikko STI ETF 100 every Friday at 4.30pm.

this is an important clue for serious long term investors that are considering using DCA method to reduce risk and achieve a reasonable long term compounded annual growth rate (CAGR) of 5% to 5.6% plus annual dividend of about 2% to 3% plus cost savings of x% due to using DCA (20.3% cost savings for the last 31.4 years from Jan 1980 to May 2011) according to my calculation of STI performance in the last 31.4 years.

long term investment means investing for 10 to 30 years.

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