Wednesday, November 27, 2019

Why digiPortfolio Appeals To Me

In an eagerly anticipated news, DBS announced the launch of the digiPortfolio segment live on its investing platform. The main objective is to enable everyday Singaporeans like you and me to invest and grow our money.

The theme - "Invest. Sleep. Repeat" is exactly why the digiPortfolio is appealing to the masses. It is especially suitable for those who want to invest and grow their money yet have limited time and commitment to DIY their own portfolio.

With digiPortfolio's dedicated team taking care of your investment, investors can now have their cake and eat it too. Peace of mind along with potentially steady compounded growth in their investments.



Why digiPortfolio Appeals To Me?

The digiPortfolio currently provides two portfolio offerings to investors - Asia Portfolio and Global Portfolio.

If you have been following my blog, you would know that I have been channelling my resources within Asia. This is largely due to the familiarity with the local accounting and regulatory practices.

While it gives me easier access to do scuttle-butting on companies, the flip side is that my returns over the years have been heavily pegged to the Asia market's performances. I have been unable to tap on the good performance of other overseas markets, especially the US market.

With digiPortfolio, I can finally start to diversify into the global market knowing there are dedicated portfolio managers within the team that can help me manage my investments.

Step 1: Choose the Asia Portfolio or Global Portfolio

As a start, you have a choice between the Asia Portfolio or the Global Portfolio and both are suitable for beginners since one only requires $1,000 (do note the respective SGD and USD currencies) to invest.






Step 2: Choose Your Risk Appetite 

Once you have selected your focus areas on your portfolio, you will need to indicate the preferred risk level that you are comfortable with.

There are 3 risk levels for each portfolio selection, which is classified under "Slow n Steady", "Comfy Cruisin" and "Fast n Furious".

The "Slow n Steady" selection is the most risk adverse where the portfolio consists mostly of fixed income (80%), Cash (5%) and Equity (15%).

The "Fast n Furious" selection is the least risk adverse where the portfolio consists of Equity (75%), Fixed Income (20%) and Cash (5%).

For me, I chose the "Fast n Furious" risk level because of its heavy weightage on the equity selection which I think will continue to do well in the next few years.







There are factsheets that you can also zoom down to each portfolio selection if you want to read on each the ETF holdings.




Step 3: Complete the Customer Account Review (CAR)

As mandated for regulatory and compliance purpose by MAS, every investor is required to complete the Customer Account Review (CAR) prior to putting his or her money into the Global Portfolio investment.

This is to enable the bank to assess if an investor has the relevant knowledge required to understand the risks that investment products possess.

No pre-qualification is necessary for investing in the Asia Portfolio.



Step 4: Transfer Funds From Multi-Currency to digiPortfolio Account

All you need is now a transfer from your multi-currency to the digiPortfolio account.




Step 5: Sit Back, Relax and Enjoy Watching Your Moneytree Grows

And ta da.... You are all set!

Now all you need to do is to relax, sit back and watch how your digiPortfolio performs.

Remember! Investing is for the longer term, so it is likely that you will have to be patient to reap your rewards (My portfolio is in green as I wrote this)


Disclaimer: This is a sponsored post from DBS but all opinions stated are purely mine. Disclosures of risks are subjective so please evaluate on your own. 


Thanks for reading.


If you like our articles, you may follow our Facebook Page here

29 comments:

  1. is this a sponsored post? if so, please mention it. would be disingenuous not to

    ReplyDelete
    Replies
    1. Why would it matter? I walk the talk by using the product myself as you can see it.

      Delete
    2. Slightly over 1k doesn't mean putting any risk for you so zw does have a point

      Delete
    3. Yes it matters. Readers do expect financial bloggers to declare sponsored post.

      Delete
    4. I'm sure you guys are matured adults and doesn't need to be spoon fed so evaluate at your own decisions.

      Delete
    5. It matters because that is the expectation to put disclaimers. Almost all financial bloggers mention it when they introduce products to the public. Why are you so reluctant to mention it?

      P.S. If they pay you 2k, and you put the 1k in the product, would that be considered be "walking the talk"?

      Delete
    6. Take a look at these posts and you see they all mentioned it, some right at the start and some at the end.

      https://financialhorse.com/reps-invest-review/
      https://www.sgbudgetbabe.com/2019/11/dbs-digiportfolio-one-of-best-and.html

      Delete
  2. Yes. I personally think this is a good platform to tap into the global market without worrying on the dividend tax etc if we will to invest ourselves and also save the time to actually understand the global market.

    I myself have just started the global portfolio with DBS as well.. Wish us luck

    ReplyDelete
    Replies
    1. Hi Ray

      Yeah exactly, the thing is they are portfolio managers not fund managers so by right they should have the upper cut advantage than us in understanding the different funds while we save time to DIY the portfolio ourselves.

      Delete
  3. bro any mgmt fees to consider? tks

    ReplyDelete
    Replies
    1. Hi CK

      Yes they do charge management fees of 0.75% for handling your portfolio. These fees are different with the ETF fund fees.

      Delete
    2. wont 0.75% seems a tad on the high side?

      Delete
    3. Hi FC

      Yeah, it seems a little high on the front but I think in the long term we'll have to see if that is the new norm or other robos with a much lower comm can sustain with their low fees.

      Delete
    4. I guess if they can return me 5 percent per annum I wouldn't mind the 0.75% mgmt fee. just wondering if the mgmt fee is front loaded or back loaded.

      Delete
    5. CK,

      Mgmt fee is calculated daily (based on portfolio NAV) & deducted once a year. Bit like POSB interest in reverse.

      Expect some years to be -ve ( can be big -ve if prolonged bear market).

      For e.g. a 50% global equity & 50% global bonds portfolio provided a LONG term return of 6.8% CAGR (Jan 1994 - Oct 2019).

      But it's worst year was -19.7% (2008).
      And max peak to trough drawdown was -30% (Oct 2007 to Feb 2009).

      Delete
  4. looks like a sponsored post

    ReplyDelete
  5. Definitely a sponsored post lah LOL. But more importantly is whether got cover BOTH pros & cons??

    Good for those who want convenience & perceived safety of DBS. Else with some effort, you can replicate using Interactive Brokers buying the ETFs from London Exchange and also enjoy similar low expenses or even cheaper (transaction fees versus annual wrap fees).

    Another good thing that nobody talks about is the use of Dublin and/or London registered ETFs. These enjoy dividend withholding tax treaty with US. So underlying US companies' dividends will be taxed at 15% instead of 30% if we buy US ETFs direct from US markets.

    Most other robo-advisors use US ETFs & are subject to 30% dividends withholding tax. But most will apply for full/partial refunds for those US bond ETFs. US equity ETFs ... can't escape.

    There is *some* active allocation probably based on asset class valuations & the economic cycle (similar to StashAway). Is the process systematised & automated? Or is it based on human discretion from analysts & strategists? Did DBS do a backtest on the process? How did it compare, say, to a global 75:25 or 50:50 index over the past 30 years?

    As for "invest. sleep. repeat" .... get real lah haha! I can bet 150% that in the next -50% bear market, investors will pull out or stop their regular investing (usually near the bottom LOL).

    ReplyDelete
  6. uncle168,

    you should disclose this as a sponsored post and put disclaimer not sure make money one or mas spf cad will come to find you and dbs drink kopi leh

    https://asas.org.sg/Portals/0/Images/ASAS/news/Enhanced%20Appendix%20J/Annex%20A%20-%20SCAP%20APPENDIX%20J.pdf

    keekeekee

    ReplyDelete
  7. uncle168,

    you advertise for dbs on investingnote, public forum cannot advertise one leh or they sue you unless you pay them for the post and put disclaimer

    if someone complain about you to the authorities then dbs would act blur because they got put disclaimer on their website, whether you put is your business

    keekeekee

    ReplyDelete
  8. LOANS AVAILABLE

    Do you need Personal, Business Cash Loan, Unsecured Loan, Get unsecured working capital ? We Have Loan Programs Tailored For any Profile apply a loan with us today to Satisfy your Business Needs.

    Operation;

    Fast and Simple Loan
    Quick Application Process
    Approvals within 24-72 Hours
    Optional Fee Loan
    Funding in less than 5 days


    LOAN SERVICES AVAILABLE INCLUDE:
    ================================
    *Personal Loans.
    *Business Loans.
    *Investments Loans.
    *Business Expansion Loans.
    *Hard Money Loans
    *Construction loans.
    *Credit Card Clearance Loan
    *Debt Consolidation Loan

    We Offers Financial Consulting To Clients, Companies Seeking Debt/Loan Financing And Seeking For Working Capital To Start A New Business Or To Expand Existing Business.

    Interested Parties, kindly contact us for additional information via

    Mail; Howardfinancialaid@yahoo.com
    Whatsapp: +1 (573) 279-4038
    Company Address: West Ave, Hawthorne, CA.

    ReplyDelete
  9. Are you so hard up on money that you have to earn commission from this? You have fallen.

    ReplyDelete
    Replies
    1. It's ok to earn commissions from promoting stuff. After all nobody cares about our family's welfare as much as we ourselves.

      It's just good ethics to be upfront about it.

      Especially if you're not going to list down a lot of the cons and other alternatives to consider or some hard questions which readers can follow up with DBS if they're interested.

      Delete
    2. seems like alot of keyboard warriors around with the need to comment on any and everything

      Delete
  10. Hi Brian, may I know if there are any estimated dividend for each portfolio or capital gain only if any? Thanks.

    ReplyDelete
  11. DO YOU NEED A LOAN?
    We are a financial consultants that handles international finances for any amount of banking instruments. What about finding a reputable Debt Consolidation firm that can assist you in reducing monthly installment so that you will have affordable repayment options as well as room to breathe when it comes to the end of the month and bills need to get paid? Mr Steve Wilson Loan Firm (stevewilsonloanfirm@gmail.com) is the answer. Reduce your payments to ease the strain on your monthly expenses. Feel free to engage our leased facilities as We have provided over $2 Billion in business loans to over 25, 000 business owners just like you. We use our own designated risk technology to provide you with the right business loan so you can grow your business. Our services are fast and reliable, loans are approved within 24 hours of successful application. Whatsapp:+393510675312

    * Personal loans,
    * Truck Loans
    * Car Loans
    * Real Estate Loans
    * Refinancing Loans
    * Debt consolidation loans
    * Education Loans
    * Farm Loans
    * Corporate Loans
    * Business Start-up Loans

    We offer loans from a minimum range of $5, 000 to a maximum of $500 million, STEVE WILSON LOAN FIRM Will give you loan with an affordable interest rate of 2% and loan duration of 1 to 30 years to pay back the loan (secure and unsecured). Our aim is to provide Excellent Professional Financial Services. Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved. Do not keep your financial problems to yourself in order for you not to be debt master or financial stress up, which is why you must contact us quickly for a solution to your financial problems. It will be a great joy to us when you are financially stable
    Email us via:

    Yours Sincerely,
    Mr Steve Wilson.
    Whatsapp:+393510675312

    We are certified and offer fast and reliable services

    ReplyDelete
  12. 4.4 Where there exists a connection between the endorser and the seller of the
    advertised investment or investment service that may materially affect the
    weight or credibility of the endorsement (i.e. the connection is not
    reasonably expected by the audience), such a connection must be fully
    disclosed.

    ReplyDelete
  13. Counting fresh capital as part of capital gains making cagr look good.

    Now this.

    You should fall on your own sword.

    ReplyDelete
    Replies
    1. "Counting fresh capital as part of capital gains making cagr look good."

      I was starting to ponder if I'm the only 1 to notice this.

      Delete
  14. Get Shifting/Relocation Quotation from ###Packers and Movers Delhi. Packers and Movers Delhi 100% Affordable and Reliable ***Household Shifting Services. Compare Transportation Charges and Save Time, Verified and Trusted Packers and Movers in Delhi, Cheap and Safe Local, Domestic House Shifting @
    Packers And Movers Delhi

    ReplyDelete

UA-57154194-1