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Unit Trust
Why trade Unit Trust with POEMS
No Sales Charge
No Switching Fees
No Platform Fee
Lower risks compared to other financial products like stocks and DLCs due to diversification of holdings
Almost 2,000 funds across various investment objectives, asset classes and geographical regions to diversify your portfolio.
Regular Saving Plan (RSP)
Whether you are planning for retirement, saving for your children, or achieving any financial goals, you need a sound investment plan and the right product to see you through.
Regular Savings Plan is an investment plan that can help you meet your financial goals. It takes advantage of the dollar cost averaging concept that does not require you to worry about market timing and volatility.
Lump-sum investment (EPS)
Other than investing regularly via RSP, you can invest in lump sums starting from S$500 (minimum investment amount varies between the funds). With lump sum investing, you can invest the money all at once into the market as soon as possible.
One of the methods to do lump sum investing in Unit Trust is via Lump Sum Payment – EPS (preferred option).
EPS allows investors to do a fund transfer payment via the ATM or Internet Banking for purchase of their shares or unit trust. To apply for EPS linkage, please mail in a copy of the Application Form for EPS to:
Phillip Securities Pte Ltd
250 North Bridge Road
#06-00 Raffles City Tower
Singapore 179101
Alternatively, you can make a payment via cheque payment or Bank Internet Banking Service. For more information, please visit FAQ > How do I make payment for my unit trust purchases?
What is Unit Trust
A unit trust is an investment vehicle that comprises a pool of funds from many investors and managed by a fund manager. The fund manager will invest the pooled money into assets such as stocks, bonds, money market instruments, a combination of these investments, or even other funds. By purchasing unit trusts, it will give you exposure to all the investments in that fund. The collective holdings of the assets held in trust will form the total portfolio of a unit trust fund.
Pricing Mechanism
The price of a unit trust is the Net Asset Value (NAV) per unit. This is calculated by the fund manager after the end of every business day and will be made known to the public by T+2 i.e. 2 business days after the business day in question.
An investor’s entitled net monetary value of the unit trust fund is the number of fund units owned, multiplied by the NAV per unit.
The number of units of a fund represents an investor’s proportionate holdings of this portfolio of assets and their proportionate entitlement to the income (if any) generated by these assets. Therefore,
(Number of units of a fund owned by an investor) x (NAV per unit*) = Investor’s entitled net monetary value of the unit trust fund
*The NAV (Net Asset Value) per unit prices announced by fund management companies are already net of the fund’s Annual Management Fees and Trustee Fees. We do not charge or collect these fees.
Cost
There are some costs involved when you invest in a unit trust. While some fees are applicable to all funds, there are other fees that you can avoid depending on which fund provider you choose to do your investments with.
With POEMS, enjoy:
0% Platform fees; 0% Sales charge; 0% Switching fees
Annual Management Fees and Trustee Fees are the only applicable fees. The management fee helps to cover the costs of operating the fund as well as the fund managers’ expertise in managing the fund. The trustee fee is charged by the trustee for providing custodian services for safekeeping the fund’s assets. The management fee usually ranges from 0.5% to 2% and the trustee fee usually ranges from 0.1% to 0.15%. The NAV per unit announced by the fund management companies are net of management fees and trustee fees.
Advantages
Considerations
Transfer In
There are many good reasons why you should transfer in your assets from elsewhere to POEMS. You can consolidate your holdings in a single view and save more on your investments. Transferring in your assets is completely FREE-of-charge1. What’s more, be ready to get rewarded when you invest and accumulate your assets with your POEMS account.
Why wait? Transfer in your Unit Trust holdings and enjoy the following benefits:
– Be rewarded up to S$1,000
– 0% Platform Fees, 0% Sales Charge, 0% Switching Fee when you trade via POEMS
– Widest select of almost 2,000 funds
– 24/7 access to your investments via POEMS
Advisory Service
Need a helping hand to navigate your investment portfolio?
Get professional advice from our friendly experts to help grow your investments through his/her analysis. The Unit Trust Wrap account allows our representatives to wrap suitable Unit Trust funds into one account by performing a financial review coupled with qualified advices and regular portfolio rebalancing to tune up your investments.
1. There is no charge imposed by Phillip Securities Pte Ltd. However, some banks charge a transfer out fee. Please check with your current distributor on their relevant charges.
Frequently Asked Questions
- Via bank ATM/internet banking facility:
- Electronic Payment for Shares (EPS) – Lump Sum Payment
(preferred option); or - GIRO, if you have applied for it. (Not applicable for Cash Management Accounts)
- Electronic Payment for Shares (EPS) – Lump Sum Payment
- Via Bank Internet Banking service:
- Make payment via the Bill Payment function –
- Participating banks: POSB/DBS, UOB, OCBC, MayBank, Standard Chartered Bank, Citibank
- Simply enter the full 7 digits of your trading account number.
If your account has less than 7 digits, please enter the relevant number of zeros before your account number e.g. trading account
“12345” to be entered as “0012345”
Note: It usually takes 2-3 working days for us to receive your payment. For Citibank bill payment, it will take 5-7 working days.
- Make payment via the Bill Payment function –
Note: Nets and Credit card payments are not accepted. Payment for trades cannot be made at any of the branches.
*Note:
- EPS – Lump Sum Payment should be done by 9pm on T (Transaction) day.
- For existing DBS/POSB GIRO applicants with Phillip Securities, deduction will be caried out on T + 1 day after 3.00 pm.
- Online Bill Payment via internet banking should be performed on T day.
- Investment Account (Margin/Custodian/PCMA) clients should ensure that there are sufficient funds in their accounts before submitting orders.
- Before the use of CPF-OA money to trade, please ensure that a standing instruction with your CPF investment bank is signed and CPF Investment account Number submitted to Phillip Securities.
- Phillip Securities Pte Ltd reserve the right to force sell any outstanding purchases. Any losses incurred shall be borne by clients.
Apart from being high-tech, we also understand that some of our customers value high-touch. Thus, despite growing our online channel, we have also maintained our human channels to provide this service to those who need it. A sales charge may be levied as these face-to-face channels are able to give clients financial advisory services.
Below retirement age, a CPF investment cannot be converted into a cash investment. It can only be converted when an investor reaches retirement age and has met the CPF minimum required sum set aside.
Please note that we do not charge any transfer in fees.
If you have an existing account, you can opt-in to SMART PARK easily by transferring your funds into SMART Park.
You may also opt-in to SMART Park via MyWealth App. Simply log in to your account, select Smart Series > SMART Park, select an account and click on the Opt-in button.
Alternatively, you may contact your Financial Adviser Representative or our Customer Experience Unit at 6531 1555 for more assistance.
The cut-off time is 3pm on any standard dealing day. If your order is submitted after 3pm or submitted on a non-dealing day, the order will be processed on the next dealing day. Examples of non-dealing days include weekends and public holidays of the fund’s country of origin.
Since the NAV of a fund needs to be calculated, it will be announced by the fund houses after 2 dealing days. Hence the NAV displayed is always back dated. The NAV at which you have transacted will be made known to you within 2 dealing days.
- Above 18 years of age; and
- Non-U.S. Citizens and non-U.S. Residents
Is eligible to invest in unit trusts.
For cash holdings, settlement will be up to T + 7 business days.
For CPF/SRS (IA Status) holdings, settlement will be T + 5 business days.
“Acc” and “Dis” are abbreviations of the words “Accumulation” and “Distribution”, which denote classes of the fund.
Accumulation funds do not distribute dividends. Instead, all income and interest attributable to this Class will be accumulated and reflected in the price (NAV) of the units of the Class.
Distribution funds distribute dividends either by cash payout or by reinvesting back into the fund. For transactions with Phillip, where distributions are in the form of cash, they will be re-invested to the same fund by default. The dividends will be reinvested in the form of additional units in your relevant holdings. If you want to have the dividends paid out, please fill in this form.
Dividends that are issued in units will not be received in cash. In this situation, if you require a cash payout, you may sell some or all of these units depending on your requirements.
We have recently developed a new service which is a Dividend Model Portfolio. This is a portfolio of dividend paying funds and was put together by our research team.
Dividend Model PortfolioNote: The declaration of distribution is at the sole discretion of the Fund Manager and is not guaranteed.
It adopts the concept of dollar cost averaging whereby more units are bought when prices are low and lesser units when prices are high. As a result, in times of fluctuating markets, the average cost for all the units can be lower than the average price during the same period.
For online applications via POEMS, kindly follow these steps:
Login to POEMS > Acct Mgmt > Regular Savings Plan (RSP) > Unit Trust RSP > Investment Instruction > Apply Plan
For new Unit Trust RSP application, the plan will commence only when the GIRO Linkage Application has been received by Phillip Securities Pte Ltd (PSPL), and approved by the respective banks. For non-cash RSP, there must be CPFOA/SA/SRS details tagged to your account.
Note: Applications received will take up to 30 business days to come into effect.
GIRO linkage is subjected to the respective banks’ processing timeline which is approximately three to six weeks after you have submitted your GIRO application.
Additionally, you can login to POEMS to check your status via Acct Mgmt > Regular Savings Plan (RSP) > Unit Trust RSP > Investment Instruction.
You may prefund to kick start your Unit Trust RSP while pending the GIRO Linkage approval via the prepayment option.
You can seek assistance from your servicing representative or visit any of our Phillip Investor Centres for the arrangement.
Some funds require an initial investment before you can subscribe to Unit Trust RSP. Whether a fund requires initial investment will be stated in the fund information.
Deduction details as follow:
- For Cash investment, money will be deducted from your bank account on T-3 day, depending on bank processing timeline
- For CPF/SRS investment, money will be deducted from your CPF account/SRS agent bank on T-1 day.
Please ensure that you have sufficient funds in your account before the deduction date (T-3) to prevent failed deductions.
A failed GIRO deduction fee may be imposed to your account by your bank. You may reach out to your bank should you require further clarification.
- For Unit Trust RSP via cash, there will be no penalty. However, your Unit Trust RSP will be terminated after 3 consecutive months of unsuccessful deductions.
- For Unit Trust RSP via CPF, a penalty charge may be imposed by the CPF bank. Your Unit Trust RSP will be terminated after 3 consecutive months of unsuccessful deductions.
Please ensure that you have sufficient funds in your account before the deduction date (T-3) to prevent failed deduction.
A failed GIRO deduction fee may be imposed to your account by your bank. Please reach out to your bank should you require further clarification.
If your holdings are below the minimum holding amount or minimum units required by the Fund Manager, you will be requested to redeem your holdings. If you wish to retain your holdings in this case, you may purchase more units to fulfil the minimum holding amount or minimum units and continue your investment.
Unit Trust RSP can only be settled in SGD currency. You can apply for the available non-SGD funds for Unit Trust RSP but the investment currency will only be in SGD.
There is 0% sales charge when you apply via POEMS. However, charges may apply if you are seeking for advisory services on Unit Trust RSP from your Financial Adviser Representative.
There is no lock-in period for Unit Trust RSP.
- Amendment(s) via POEMS:
Login to POEMS > Acct Mgmt > Regular Savings Plan (RSP) > Unit Trust RSP >
Investment Instruction > Amend
Please note that amendment(s) made via POEMS will not be reflected immediately. The updated investment instruction will be reflected after it has been processed. Instructions received via POEMS will take up to 30 business days to come into effect.
- Amendment(s) via Physical Form
Kindly seek assistance from your Financial Adviser Representative or visit any of our Phillip Investor Centres to complete the form submission. Form submissions received will take up to 30 business days to come into effect.
Note: Some funds will require a minimum initial investment. For such funds, you must have lumpsum holdings prior to the application or amendment of the Unit Trust RSP. Otherwise, your application or amendment for the Unit Trust RSP may be rejected.
All RSP amendment and termination submissions (via POEMS or physical forms) will take up to 30 business days to come into effect.
- Partial Termination (Amendment)
Partial termination of Unit Trust RSP is termed as Amendment. For amendment, you may submit online via POEMS 2.0/Mobile or physical form. - Full termination
If you would like to have a full termination of all the Unit Trust RSPs, you are required to submit the physical termination form with the assistance from the respective Financial Adviser Representative or visit any of our Phillip Investor Centres.
All RSP amendments/terminations will take up to 30 business days to come into effect.
You will have to submit the amendment/termination via POEMS 2.0, Mobile or physical form after redemption as specified in Q.16.
All submission of RSP amendments/terminations will take up to 30 business days to come into effect.
If the fund has been suspended or closed to subscriptions indefinitely, your Unit Trust RSP will be terminated. Your existing holdings will remain unchanged unless the fund is to be closed.
