It is a highly recognized fact that most people will never be able to beat the market consistently.
This is also the reason why many investing experts including Mr Warren Buffett believes that the average layman would be better off investing his money in ETF instead.
However, many of our reader wrote in asking for a comprehensive guide detailing how one can go about investing in ETF in Singapore.
Hence, we have decided to write a step by step guide, completed with screenshots to explain how anyone in Singapore can easily invest in ETF using POSB’s Invest-Saver services.
Note: The ETF purchased here is the Nikko AM Singapore STI ETF
Online Method Via iBanking
[Important] Before you begin, do ensure that…
- You are at least 18 years of age at the date of application.
- You have a POSB iBanking account
- Log onto your iBanking account
- Under the “Invest” tab on the top, Select “More Investment Services”
- On the following page, click on “Set Up Exchange Traded Fund Regular Savings Plan (RSP) under the “Make an Investment” column.
- On this page select the following:
- The account you wish to use to fund your investment
- The choice of fund (Nikko STI ETF)
- The amount you wish to invest every month
- Remember to click on the hyperlinks to read the Prospectus and Product Highlights Sheet
(You must click before you can proceed)
- Ensure the checkbox for the Terms and Conditions Governing Investment in Funds is ticked before you continue with the application.
- Click on the button below to submit your order!
Offline / ATM Method
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Step 1: Insert your ATM/ Debit card and enter your PIN.
Step 2: Select the “More Services” option
Step 3: Select your preferred language
(e.g. English in this example)
Step 4: Select the “More Service” option again
Step 5: Select “Regular Savings Plan (RSP) for Exchange Traded Fund (ETF)”
Step 6: Select “RSP Setup / Change of subscription amount”
Step 7: Read both pages of the Terms & Conditions & select “Confirm”
Step 8: Enter amount you wish to invest into the ETF every month and select “Continue”
(e.g. $200 monthly in this example)
Step 9: Select the account you wish to invest from
(e.g. POSB Savings in this example)
Step 10: Select your Tax Status
(e.g. Resident in this example)
Step 11: Check your application and select “Confirm” to finish your application!
And that’s it! The Bank will send you a confirmation letter to inform you that your POSB Invest-Saver has been setup successfully and when the first deduction will take place.