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Investing through a Do-It-Yourself monthly Investment Plan

A few months ago I shared about the use of monthly investment plans. Had a chat with some friends lately and decided to add some context to this bit of information.

Apart from having the discipline to set aside $100 or more per month to invest. An alternative view will be to do it yourself – using the same concept. However, choosing brokerages that charges commission of below S$10 per trade, while at the same time investing at a minimum of #200 to average down the entry price. This gives a slightly more feasible approach to long term investing.

  • Why $200?

When investing with a minimum of $200, the math of gain/loss adds up. Commission is something that makes or kills a trade. Imagine having to pay $10 for a $200 trade, it will consitute about 5% of your total investment. To return a net profit, the invested amount will have to increase 10% – $20.00 from the initial invested amount to breakeven. As such, it will be adviseable to look into the commission aspect whenever executing a buy.

  • Exit Strategy

When investing in the monthly investment plans from brokers, they do provide for low fees or in some cases $0 fees for share purchase. However, the caveat is when you would like to sell off the shares, you end up with odd lots. Whereas, when you proceed with a “do it yourself” method, you can enter and exit anytime at market rates instead of a skewed odd lots purchase spread – which you usually will need to transact via the broker – which could potentially mean higher commissions to be deducted from the gain/loss.

  • What are some of the listed stocks to consider

There are some REITS, ETFs and Stocks on the SGX which are good with yields or current market valuation is reasonable for purchase. A good method to screen through the list will be via the SGX StockFacts.

Using the search criteria function you can choose to filter certain range of classifications to look for stocks of interest. For example – yield,, industry.

Screen Shot 2018-06-22 at 07.34.24

It also shows you market consensus with BUY, HOLD and OVERPERFORM. Which is a good method to evaluate if a stock is worth keeping, buying. Which will very muchdepending on the investment strategy.

Screen Shot 2018-06-22 at 07.35.05

Happy explroing the investing tool and charting your new DIY Investment plan. Thats all for now, till the next time.

Note: StockFacts is a free resource by the SGX, they do provide for regional coverage of other stock exchanges at a fee. For more information, you may wish to check out the SGX website directly.

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