REGULAR INVESTMENT PLANS
DBS Bank and OCBC Bank offer a regular investment plan which allows you to invest regularly in unit trusts with as little as $100 a month. This ensures you invest regularly instead of trying to speculate through timing the market.
Mr Gregory Choy, head of wealth advisory at OCBC Bank, says investors can enjoy a promotional sales charge of 0.88 per cent when they purchase unit trusts online. The promotion ends on June 30.
Young investors interested in stocks can consider OCBC's Blue Chip Investment Plan for investing in blue chips listed on the Singapore stock market. Investors can pick from a list of 19 companies. The minimum investment per company is $100.
And under POSB Invest Saver, investors can invest regularly in either Singapore bonds or blue- chip stocks via two exchange- traded funds listed on the Singapore Exchange, starting from $100 a month.
YOUNG INVESTOR ACCOUNT
DBS and OCBC have programmes catering for young investors.
At DBS, investors are able to register at the age of 18 for a Young Investor trading account. Young investors who have not reached 21 can trade only through the Cash Upfront Account (CUF).
CUF differs from normal accounts as it requires a cash top-up before any buy trades can be executed. Access to certain instruments may be restricted, to limit the risk exposure faced by young investors.
Mr Brandon Lam, Singapore head of financial planning group at DBS Bank, says this account is suitable for investors who prefer a customised and self-directed approach that adopts an active investment strategy.
"The rationale for having such an account stems from DBS' belief that exposure to investments should start early because it shapes prudent financial behaviour and the importance of investing early. Investment horizon plays a very significant role in wealth accumulation through compounding and reinvestments of returns," he says.
Over at OCBC, its Young Investor Programme allows investors who are aged 18 to 29 to attend exclusive educational workshops and build investor confidence.
UOB YOUNG PROFESSIONALS SOLUTION
Targeted at emerging affluent millennials aged between 24 and 35, it comprises three components - the UOB One Account, UOB YOLO credit card, and the United SGD Fund.
The Young Professionals Solution helps millennials to invest by "sweeping" into the fund earned interest from each customer's One Account and rebates from spending on the YOLO card.
UOB is the only bank in Singapore to offer the sweep function tied to a current account, credit card and unit trust, enabling its customers to invest their earned interest and credit card rebates in a unit trust.
UOB has waived the 2 per cent online sales charge and reduced the minimum initial investment amount required to $10, instead of the usual $1,000.
"These changes make it more attractive and effortless for millennials to start investing sooner as they address the concerns that millennials say they have," says Ms Chung Shaw Bee, head of deposits and wealth management, Singapore and the region, at UOB.
"According to a UOB survey, the top reasons why millennials in Singapore held back from investing were high upfront fees (29 per cent), a preference for cash savings (25 per cent) and perceived high minimum purchase amounts for unit trusts (10 per cent)."
OCBC ONEWEALTH APP
Download the OCBC OneWealth app to get daily market updates and investment suggestions from OCBC experts.
Visit the SGX Academy website (https://www.sgxacademy.com/) and check out the beginner courses for young investors.