Sunday, July 22, 2007

Some Sharing!

Ok, I understand that making investment in stocks may scare most of you my peers away! I will highlight one low risk investment that will yield significant returns. I know many of you will think what i mention is too good to be true and feels unconvincing about it. Well be patience, read on, and decides later.

Introducing to you the Fanastic Investment Vehicle!
TATA!!! Exchange Traded Funds!
I will just give the rough details of the STI ETF 100. Basically, it make investment in the top 100 performing companies when it started out. Now, it has strink the size to 50 and going to cut down further to 30.

This instrument is like unit trusts where professionals do their research and build up the fund with equities, bonds, currencies . Same things goes here and the professionals comes together to evaluate companies that will have strong performance and build the Exchange Traded Fund up.

The ETF is review yearly ensuring strong perfomers in the market constitutes to the fund, making the fund more valuable. Thus, it can be said this fund will just head higher very year with the slightest chance of heading down.

Investing in the STI ETF, you will be entitled to dividends as well and so far, it has effectively give dividends twice a year since 2002. With this, it edge out unit trusts as it constantly rewards its investors and from what i see has a faster gain then most unit trusts.


The best part of the story is 100% of your CPF-OA can be use to invest in it whereas only 35% of your CPF can be invested in stocks. With the ETF, you can easily beat the 2% CPF interest that the government gives with the dividends you get from it and you still get to have capital gains from what you invested.

Do give ETF a thought! There are other ETFs offer by Lyxor on Singapore Stocks Exchange, you may do more research on them before investing.

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