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

6 reasons why you should start a Share Builders Plan now!

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.


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.

The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries.

Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned.

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.

Contact us to Open an Account

Need Assistance? Share your Details and we’ll get back to you