4 reasons why Endowus is your SRS investment choice
Endowus Insights

4 reasons why Endowus is your SRS investment choice

Updated
June 23, 2022
published
January 7, 2020
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endowus-your-srs-investment-choice

The Supplementary Retirement Scheme (SRS) is a personal income tax relief scheme that helps both tax paying Singapore residents and foreigners reduce their taxable income. If you have topped up your SRS, well done!

The confusing choice of options available grows as more SRS products get approved. The 4 reasons below are why we think choosing Endowus makes the most sense:

1. Endowus does not discriminate against the amount you have.

For SRS, by investing through Endowus, you can top up whatever that is in excess of your next tax bracket and invest the whole dollar sum. For example, if your tax chargeable income is $82,000 and your enthusiasm for contributing to nation building is only at 7% instead of 11.5% of your tax bracket, you are welcome to contribute $2,000. Hey, we don't judge, and we definitely wouldn't know anyway.

2. You can get global, diversified exposure easily.

Endowus has access to unit trusts from big fund houses such as Dimensional and PIMCO. Some of these funds advised by Nobel Laureates and/or trillion dollar fund managers. What this means, is that we get to invest in funds that were previously only available to the big boys (think GIC or Cristiano Ronaldo). Just like how cutting-edge technology is now available to everyone via smartphones, Endowus has made previously exclusive investment products accessible to everyone, and now, you may enjoy this access when you invest your SRS with us.

3. There is no rebalancing cost, and no transaction costs.

Many people choose to invest their SRS in SGX-listed equities or Real Estate Investment Trusts to maximise their investment returns. Brokerage fees, which often come with fixed minimums, make investing a smaller amount of money more expensive. Imagine paying a fixed $26.75 for a $500 investment - you'll lose 5% immediately on your investment before you even get started.

Ideally, we should not incur high fixed costs if we want to sell and buy our holdings to manage our risks. Endowus charges a flat 0.4% access fee for SRS investments, GST included, and that will cover all transaction costs, including sales charges.

4. You won't incur any foreign exchange charges.

Our funds are denominated in Singapore dollars, and the fund managers in our Endowus Advised portfolios transact in Singapore dollars as well. This means that when fund managers take our money on an aggregated basis, they will convert it into other currencies at the lowest possible rates to invest our money. In a nutshell, foreign exchange transactions are best done at scale on a fund level, and you'll never incur foreign exchange fees for your trades.

In summary:

Now that we've given you 4 reasons why investing your SRS money through Endowus, for those who don't know what an SRS account is, or how to get one, feel free to read this. For everyone else, create an account with Endowus now to explore and happy new year!

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This article is for information purposes only and should not be considered as an offer, solicitation or advice for the purchase or sale of any investment products. It is recommended that you seek financial advice as to the suitability of any investment. Whilst Endow.us Pte. Ltd. (“Endowus”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies or typographical errors.

Any opinion or estimate above is made on a general basis and none of Endowus, nor any of its affiliates, representatives or agents have given any consideration to nor have made any investigation of the objective, financial situation or particular need of any user, reader, any specific person or group of persons. Opinions expressed herein are subject to change without notice.  

Investment involves risk. The value of investments and the income from them can go down as well as up, and you may not get the full amount you invested. Past performance is not an indicator nor a guarantee of future performance.

Please note that the above information does not purport to be all-inclusive or to contain all the information that you may need in order to make an informed decision. The information contained herein is not intended, and should not be construed, as legal, tax, regulatory, accounting or financial advice.

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