Passive investing for peace of mind.
During this session, find out more about low cost diversified investing from 2 young adults - and their own successes and failures in managing and investing their monies.
They will share how they decided that passive investing works best for them, and how it enables them to focus on their other passions in life. They will also share on how they intend to position themselves in the new digital economy and grow their human capital.
0:00 Introductions and the wealth equation
3:08 Sharing of Personal Investment Experience
12:30 Growing our Earning Potential
27:46 Pigeonhole questions Part 1 and 2
39:25 Importance of Diversification
48:51 QnA for Part 3 ?Importance of Diversification
1:02:07 Discipline in Investing
1:12:55 Final QnA
We have also picked out a few questions that we didn't get round to answering and here they are:
Q: I want to start passive investing, but am confused about how to choose amongst the different index funds.
A: Some of the key things to look out for in index funds, or funds in general, are
- Reducing Dividend Withholding Tax, as poor tax structuring will decrease your investment returns
- Total Expense Ratio of the funds, to reduce cost of investing
- Liquidity of the funds, especially if you are investing in ETFs, because a large bid-ask spread will affect your investment returns
Through Endowus, you can invest in tax efficient UCITs unit trusts with a low TER, and you will get a globally diversified portfolio. You will also be buying the unit trusts at cost, rather than paying a slight premium over NAV through ETFs.
If you want to invest in UCITS ETFs, do also take note of FX charges and bid-ask spread.
Q: If we have $10k now, should I put all into the market at this price, or DCA across a few months?
A: It depends on your risk appetite - lump sum investment does better on average because you have more money in the market, but there is also a risk of making bigger losses. It also depends on the platform you invest through, because you should minimise brokerage and transaction cost charges.
Endowus does not charge any sales charges and brokerage fees. So investing through us can be an efficient way to minimise brokerage charges
Q: Can we invest globally from Singapore? What's the cheapest and best way?
A: In terms of CPF and SRS wealth, Endowus is the cheapest and lowest way to get a very broad, diversified equity portfolio.
For cash investments, if you are able to use a low cost discount brokerage, then investing in UCITS funds is also a viable option compared to Endowed cash investment offering.
Q: How is Endowus different from other platforms, and how does Endowus keep our assets safe?
A: We focus on advice, and we share our investment philosophy through events, webinars, as well as the content we write on Endowus Insights. We share this freely and openly so that our clients and a wider audience can understand how systematic and passive investing can be fuss-free and serve their retirement goals better.
We also give our clients a low cost, globally diversified portfolio across their CPF, SRS and cash. We are the only platform that does that and we ensure that all-in costs are low so that our clients have a better chance of success. Because we use SGD hedged bond funds, we also protect your investments from FX risks when you invest in a low volatility portfolio with us, unlike other platforms that use USD bond funds.
On how we keep your assets safe, please read this article. In short, we not only custodise your assets, but we do it in your legal name. In the unfortunate scenario where Endowus has to cease operations, you will still be able to hold on to your investments. Operationally, UOB Kayhian will service your account and you can choose to liquidate your assets as and when you like.
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. Rates of exchange may cause the value of investments to go up or down. Individual stock performance does not represent the return of a fund.
Any forward-looking statements, prediction, projection or forecast on the economy, stock market, bond market or economic trends of the markets contained in this material are subject to market influences and contingent upon matters outside the control of Endow.us Pte. Ltd (“Endowus”) and therefore may not be realised in the future. Further, any opinion or estimate is made on a general basis and subject to change without notice. In presenting the information above, none of Endowus Pte. Ltd., its affiliates, directors, employees, 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. Therefore, no representation is made as to the completeness and adequacy of the information to make an informed decision. You should carefully consider (i) whether any investment views and products/ services are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. You may also wish to seek financial advice through a financial advisor or the Endowus platform and independent legal, accounting, regulatory or tax advice, as appropriate.