- FSMOne.com investors will now be able to apply for RSP on a selected list of 40 ETFs listed on SGX, HKEX and US stock exchanges
- RSP is a monthly subscription plan that enables investors to invest a fixed smaller sum of money on a regular basis into their chosen investment product
- FSMOne.com has over the years pushed out various initiatives in place to help investors easily kick start their regular investments, including the RSP Special List for unit trusts, and bringing down the minimum amount to $500 for FSM MAPS
- The minimum investment amount for ETF RSP can be as low as S$50*. Commission rates are at only 0.08%, subject to the minimum amount for the various exchanges at S$1, HK$5 or US$1 respectively
RSP & DCA – Disciplined Strategy to Save and Invest
FSMOne.com has always been advocating for investors to take a disciplined approach when they invest, and we have regularly written articles to encourage our investors to consider investing with a Regular Savings Plan ("RSP") based on the concept of Dollar Cost Averaging ("DCA"). [Interesting fact: one of the earliest article on Dollar Cost Averaging was published on Fundsupermart.com 18 years ago on 30 Nov 2001!]
An RSP is a monthly subscription plan that enables investors to invest a fixed smaller sum of money on a regular basis into their chosen investment product(s). At FSMOne.com, we believe this is an effective strategy that helps investors to avoid timing the markets and make disciplined regular investments regardless of market conditions, while not allowing irrational emotions to impede his or her decision-making process.
Over the years, FSMOne.com has also launched various initiatives to make it even easier for investors to start their RSP investment.
The RSP Special List for unit trusts was launched to help investors kick start regular investments every month at investment amounts as low as S$100, while not having to start with the initial investment amount (usually $1,000).
Subsequently in 2013, the frontend sales charge for unit trusts bought under RSPs was further reduced to 0% to make investing even more affordable for investors. Following the launch of FSM Managed Portfolios (FSM MAPS) in 2016, investors can also apply for RSP into entire portfolios of Unit Trusts and ETFs which correspond to their risk profiles (from Conservative to Aggressive) with amounts as low as S$1,000, and this minimum amount was later brought down to S$500, helping investors build up proper portfolios on a regular basis without incurring huge capital outlay.
Finally, from this November, FSMOne.com investors are able to apply to start RSPs in selected ETFs!
All About ETF RSP
For a start, a list of 40 ETFs listed on SGX, HKEX and US stock exchanges will be available to investors to choose from, while the minimum investment amount for their monthly investment plans can be as low as S$50*! Moreover, costs are also kept at a low, at only 0.08% commission rate, subject to a minimum amount of S$1, HK$5 or US$1 respectively. Investors are also able to optimise their investment amount as they will be able to subscribe for fractional shares of HK-listed and US-listed ETFs and up to 1 share of SGX ETFs.
*Out of the 40 ETFs, only the SPDR Gold Shares ETF requires a minimum SGD RSP amount of S$250.
With over 2,000 ETFs listed on the three main markets that FSMOne.com is connected to, investors may be unsure of what to select for their portfolio, and this is the reason behind us launching our ETF Focus List earlier this year. We believe the focus list can be a good starting point for investors who are looking to gain exposure to the broader market via low-cost and diversified instruments, and this is why we have enabled 40 ETFs in the focus list to be investable via RSPs.
How to Start My ETF RSP?
To apply for RSP, simply login to your account, proceed to ETFs > Invest > Apply For RSP and select the ETF(s) that you wish to apply for RSP. You can select multiple ETF(s) should you wish to apply for more than one RSP. Key in the monthly RSP Amount for the ETFs selected.
Alternatively, you can also proceed to the Regular Savings page and scroll down to the ETFs section, click on the "40 ETFs Listed on SGX, HKEX & US Markets" text bar, and go through the entire list of ETFs available for RSP.
You can also see which are ETFs within the ETF Focus List that are available for RSP, and toggle to see the different categories of ETFs (Core Equity, Fixed Income, Regional Equity, Single Country Equity, Commodity, Tactical Plays) and choose one or more ETFs for your own portfolio.!
Unsure on the sectors or markets to focus your attention on? Our Research Teams are always coming up with content to help! Proceed to the Research Tab on our website to read more about our market outlook, or proceed to the ETF Ideas page to get a clearer idea on the ETFs that you can place within your investment portfolio, or read more articles from our external content providers! If you have more questions, feel free to contact our customer service hotline, email and live chat service. If you require more information, please contact our Client Services team at clienthelp@fundsupermart.com.
ETF RSP Trivia
- Fund your ETF RSP in their base currency with our Multi-Currency Cash Accounts – simply top-up the base currency cash account and ensure that there are sufficient monies for the deduction. For example, to subscribe for a USD ETF, top-up your USD Cash Account or to subscribe for a HKD ETF, please top-up your HKD Cash Account.
- The date for RSP subscription is the 8th of every month (or next working day if the 8th is a non-business day) from the Cash Account
- For hassle-free RSP deduction, and to ensure that your RSP does not get terminated due to insufficient monies, consider applying for a Cash Account Top-Up ("CAT") Plan into the respective RSP product currency cash account, without having to perform cash account conversions regularly, required before the RSP deduction date.
- There is no minimum participation nor lock-in period for RSP investments, and RSP investment amount can be easily changed online
- RSP will be terminated automatically after 3 consecutive failed RSP deductions
- Not sure how much you will need to save and invest regularly in order to reach your financial goal or target? Use our RSP Calculator to derive at an estimated amount that you will be able to accumulate over time with a RSP!
- To sell odd lot / fractional shares bought through RSP, you will need to submit instructions before the 15th of every month -- You can submit ETF RSP Sell Orders for board lots together with your odd lot or fractional units; alternatively, you can choose to sell your ETF board lot units through Live Trading at any time
- Buy and sell orders for ETFs will be transacted on the next trading day after the 8th and 15th respectively, and if the 8th/15th falls on a non-business day, the transaction will take place on the next trading day after the 8th/15th
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