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I'm a Singaporean. The purpose for all my blogs is to share my life experiences in Singapore.

My Lessons on Investment

What are Shares, Unit Trust and ETF?
See which investment instrument is suitable for you.
What are Preference Shares?
It is different from the common shares.
How to invest using your CPF saving?
Enhancing your retirement saving
How to invest regularly if you do not have a lot of saving?
You still can invest if you can save $100 per month
How to buy gold in Singapore?
Different ways of investing in Gold.
My Investment Strategy
Having a winning strategy is important
Be a investor or a trader?
Reasons on why I want to be a investor rather than a trader
Peace of mind after buying shares?
Reasons on sleepless night after buying shares
Things to avoid in stock market.
Don't attempt to try these even you are an expert
My favorite quotes from Warren Buffett
Very meaningful and useful investment quotes
Buying stocks based on price and value
This is the method I use when buying stocks
Investor, Traders and Speculators Charts
Charts are affected by different players in the markets
My Quotes/Rules of Investment
My own investment rules and quotes
The Goose That Laid the Golden Eggs
Protect them at all costs
Dealing with Market Randomness
Reasons on why market direction cannot be predicted
Who can be trusted in the market?
Beware of people who give you tips
Why I am not afraid of losing money in my investment?
Know your own limits and rules of the game.

My Market Analysis

STI Index
Comparison between 1998-2000 and 2008-2000
STI Index movement
Prediction from Oct 2009 to 2011
GOLD VS SGD Chart
Reason Why Gold might be a good investment
EUR/USD 10 years chart
Will it go up or down?
Taiji Symbol VS S&P 500
S&P 500 25 years chart
True value of S&P 500
Based on dollar index from 1988 to 2009
US Dollar Index
Using Taiji to Analyse
S&P(2007 to 2009) VS NIKKEI (1990 to 1992)
Is there any similarity?

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Monday, October 5, 2009

What are Shares, Unit Trust and ETF?

SHARES:
The most commonly investment instrument is shares. Shares are normally distributed by companies to raise fund for their operation or expansion. You can buy and sell shares within the trading time provided by the exchange.

You earn money when your share price goes up, and you lost money when your share price go down. You will be given dividend if the companies make money and decide to give part of the profit to the share holders.

You will be charged commission when you buy or sell your shares, usually less than 0.5% of the total cost of your shares.

UNIT TRUST:
Unit trust is a form of pooled investment where a fund manager invests funds on different shares on behalf of a group of investors.

You earn money only when your unit trust price goes up, and lose money when your unit trust price goes down. Please take note, most of the unit trust do not give out dividends.

There are sale charges when you buy unit trust. Normally is about 1 to 5% of the total cost of the unit trust you buy. There will also be management fees which normally range from 0% to 5% per annual.

Please take note, the updated price of the unit trust is done in daily basis. Normally you do not know the exact price when you buy or sell the unit trust because it will be based on the next day price.

ETF:
Exchange-traded funds hold a basket of securities like unit trust but they trade like a stock which means that they can be purchased at any time of the day.

You earn money when your ETF price goes up, and you lost money when your ETF price go down. Please note that not all ETFs will give dividends.

You will be charged commission when you buy or sell your ETF, usually less than 0.5% of the total cost of your ETF. Like unit trust, there will be management fees which normally range from 0% to 1% per annual.

3 comments:

emily said...

Hi I'm planning to do investment in unit trusts and ready to take moderate risk for the same. I have gone through DBS banks website, they are offering diverse options in
unit trusts investments
. Please guide me which unit trust should I opt for.

Freedom Achiever said...

Hi emily,

Can't really comment much on unit trust, as my investment is in shares. As for me, I rather invest in STI ETF than in unit trusts, as the former gives dividends.

Regards,
Freedom Achiever

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