6 reasons why you should start a Share Builders Plan now! June 1, 2020

Here are 6 reasons why you should start a Share Builders Plan (SBP) now! Start from as low as $100 per counter and kick-start your investment journey.

1. Good for beginners

New to investing? Facing a dilemma of what stocks to pick, fret not, we have a wide range of shares and funds available. If you are conservative and are sceptical of putting a huge sum of money, this plan could be ideal for you as you could start from as low as $100.

2. Set goals in Life

Planning for retirement? Saving for child’s education? There could be many financial goals that you would want to achieve? SBP could potentially help you reach your goals with peace of mind. It is a plan that offers a consistent and disciplined means of investment that provides access to stocks at low cost on a monthly basis. You could continue to keep the plan for as long as you like.

3. Instil good financial habits easily and hassle-free

SBP will buy selected shares once a month automatically via Inter-Bank GIRO account. Any dividends received will be automatically reinvested allowing your portfolio to grow gradually.

4. Minimise cost to market timing!

As much as we would all like to buy low and sell high, most experts do not recommend attempts at market timing. Long term investments will help to even-out the market cycles by investing an amount on a monthly basis. This concept is known as dollar-cost averaging (DCA).

Basically, this approach that does not require you to time the volatile market. By investing a fixed amount of funds consistently every month over a period of time, dollar cost averaging benefits you regardless of price fluctuation. Studies have revealed that waiting for a correction before entering the market mostly fared worse than a buy-and-hold strategy.

5. Time-Saving

Have a busy schedule? Do not have time to watch the stock market and react accordingly to the market movements? SBP could be suitable for you. As it is automatically done for you, you need not have to monitor your portfolio all the time.

6. Diversification

With a wide range of shares and funds available, you can choose more than one counter to diversify your portfolio.

For further diversification, you can start your investment by picking ETFs available in our SBP. For example, with the Phillip SING Income ETF, you can gain exposure to 30 high quality Singapore listed stocks with just a single counter subscription and expect a return up to 5.01%^.

Think BIG. Start small.

Learn more about Phillip Share Builders Plan.

^Based on Trailing 12-month dividend yield for the Morningstar Singapore Yield Focus Index as of 31/8/2018.

Disclaimer

These commentaries are intended for general circulation. It does not have regard to the specific investment objectives, financial situation and particular needs of any person who may receive this document. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. Investors may wish to seek advice from a financial adviser before investing. In the event that investors choose not to seek advice from a financial adviser, they should consider whether the investment is suitable for them.

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About the author

Share Builders Plan (SBP) Team

SBP is a regular investment plan that allows an individual to start building up a portfolio of selected SGX-listed stocks from a minimum of S$100 a month. It takes advantage of the Dollar Cost Averaging concept that does not require you to worry about market timing and volatility when you are planning for retirement, saving for your children or achieving any other financial goals.

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